ENGIE, a global leader in low-carbon energy solutions, has signed a Sale and Purchase Agreement (SPA) to divest its shareholding in key power and water desalination assets in Kuwait and Bahrain to ACWA Power.
This strategic move marks ENGIE’s exit from both countries and aligns with the company’s commitment to achieving net zero emissions by 2045.
In Kuwait, ENGIE will sell its 17.5% stake in Az Zour North, a combined gas power and water desalination plant with a capacity of 1.5 gigawatts (GW) and the ability to produce 107 million imperial gallons of water per day.
Additionally, the company will divest its 50% share in Az Zour North’s operations and maintenance (O&M) company.
In Bahrain, ENGIE will transfer its interests in multiple facilities, including a 45% stake in Al Dur, a plant with a 1.2 GW gas power production capacity and the ability to desalinate 48 million imperial gallons of water daily.
The divestment also includes a 45% share in Al Ezzel, a 0.9 GW gas power plant, and full ownership of Al Ezzel’s O&M company, which manages both Al Dur and Al Ezzel.
Furthermore, ENGIE will sell its 30% share in Al Hidd, a 0.9 GW gas power and 90 MIGD water desalination plant, along with its integrated O&M company.
Diversifying portfolio
This decision is part of ENGIE’s long-term strategy to focus on expanding its renewable energy portfolio, flexible power generation, and low-carbon solutions designed for industrial partners.
By leveraging innovation and strengthening long-term partnerships, ENGIE remains dedicated to supporting the Middle East’s sustainable energy transition.
The transaction is subject to regulatory approvals and customary closing conditions. ENGIE and ACWA Power are collaborating closely to ensure a seamless transfer of ownership while maintaining uninterrupted, high-quality operations.
Having been an integral part of the Gulf Cooperation Council (GCC) energy sector for more than three decades, ENGIE has provided gas-fired power solutions, desalinated water production, district cooling, hydrogen, and battery storage.
Despite this divestment, the company remains committed to investing in renewable energy projects and pioneering low-carbon technologies across the region.