Engie Exits Kuwait, Bahrain With $693 Million Sale to Saudi Firm

ENGIE, a global leader in low-carbon energy and services, has announced its exit from the Kuwaiti and Bahraini markets with the sale of its assets to Saudi Arabia's ACWA Power. The transaction, valued at $693 million, includes ENGIE's stakes in gas-fired power generation and water desalination facilities, as well as the related operations and maintenance companies in both countries. This move aligns with ENGIE's strategic roadmap and commitment to achieving net zero carbon emissions by 2045.

ACWA Power, a Saudi-listed company and the world's largest private water desalination company, will acquire ENGIE's 18% stake in the Az Zour North (IWPP) in Kuwait, alongside 45% stakes in the Al Ezzel (IPP) and Al Dur (IWPP) projects, as well as a 30% stake in the Al Hidd (IWPP) facility, all situated in Bahrain. The acquisition also includes ENGIE's 50% stake in the Az Zour North O&M company and 100% stake in the Al Ezzel O&M company. The completion of the transaction remains subject to customary regulatory and other stakeholder approvals.

This strategic acquisition by ACWA Power bolsters its presence in the regional energy and water sectors, with the company entering the Kuwaiti market for the first time and consolidating its position in Bahrain. The acquisition adds 4.61 GW of gas-fired power generation and 1.11 million cubic meters per day (m3/day) of water desalination capacity to ACWA Power's portfolio, enhancing its ability to meet the growing energy demands of the region and diversify its revenue streams. The secured contracted revenue streams from the acquired assets will reinforce ACWA Power’s broader strategy of tripling its assets under management to USD250 billion by 2030.

ENGIE, on the other hand, will refocus its strategy and reinvest in its core businesses, such as renewable energy, flexible generation, and low-carbon energy solutions. This realignment enables ENGIE to accelerate its growth in the energy transition and achieve its net-zero carbon commitment by 2045. The company has been a significant player in the GCC region for over three decades, offering efficient gas-fired power solutions, desalinated water production, district cooling, hydrogen and battery storage. ENGIE remains committed to the region and will continue to invest in renewable energy projects and innovative low-carbon solutions.

The acquisition by ACWA Power of ENGIE's assets in Kuwait and Bahrain has significant implications for the regional energy landscape. By entering the Kuwaiti market and consolidating its position in Bahrain, ACWA Power strengthens its commitment to the regional energy transition and supports the GCC countries' efforts to achieve their sustainability goals. The acquisition aligns with ACWA Power's strategy to triple its assets under management to USD250 billion by 2030, reinforcing its position as a leader in the renewable energy sector.

In conclusion, the sale of ENGIE's assets in Kuwait and Bahrain to ACWA Power marks a significant shift in the regional energy landscape, with both companies poised to benefit from the transaction. ENGIE will refocus its efforts on its core businesses, while ACWA Power will expand its presence in the GCC region and reinforce its commitment to sustainable energy transition. This strategic move aligns with both companies' long-term growth plans and commitment to achieving net-zero carbon emissions.