ENGIE Sells Assets in Bahrain and Kuwait to ACWA Power

In a move aligning with its strategic commitment to achieve net zero by 2045, French oil and gas major ENGIE, a leader in low-carbon energy, on Wednesday announced the signing of a Sale and Purchase Agreement (SPA) to divest its shareholding in four key assets in Kuwait and Bahrain to Saudi Arabia’s ACWA Power for $693 million.

In Kuwait, ENGIE will divest its 17.5% share in Az Zour North, a gas and desalination plant with a capacity of 1.5 GW and the ability to produce 107 million imperial gallons of water daily. Additionally, ENGIE will sell its 50% stake in the Az Zour North O&M company.

In Bahrain, the divested assets include Al Dur (45% share in a 1.2 GW gas power production and 48 MIGD water desalination plant), Al Ezzel (45% share in a 0.9 GW gas power production plant), Al Ezzel O&M (100% share in the company ensuring operations and maintenance of Al Dur and Al Ezzel facilities, and Al Hidd (30% share in a 0.9 GW gas power production and 90 MIGD water desalination plant, along with the integrated O&M company.

This deal is aimed at promoting ACWA Power’s stature as a global leader in water desalination and to enhance its footprint in the power generation sector besides strategically designed to improve the company’s cash flow and profitability through established contracts. The targeted assets in this acquisition are fully operational and maintained to meet the highest standards.

ACWA Power CEO Marco Arcelli described the acquisition as a pivotal milestone that strengthens the company’s position as a global leader in water desalination.

“We consolidate our presence in Bahrain, where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant,” Arcelli added.

Exit from Two Countries              

This transaction, which marks ENGIE’s exit from these two countries, is part of the company’s roadmap to focus on expanding its portfolio of renewable energy, flexible generation, and low-carbon energy solutions for industrial partners.

ENGIE and ACWA Power are working together to ensure a smooth transition of ownership while maintaining uninterrupted best-in-class operations. The completion of the transaction is subject to customary regulatory approvals and closing conditions.

ENGIE has been a significant player in the Gulf Cooperation Council (GCC) region for over 30 years, providing gas-fired power solutions, desalinated water production, district cooling, hydrogen, and battery storage. The company remains committed to investing in renewable energy projects, flexible generation, and innovative low-carbon solutions in the region.