Feb. 11 (Bloomberg) -- General Electric Co., the world’s biggest maker of power-plant turbines, signed a contract for almost $1 billion to supply gas turbines and services for a project in Saudi Arabia.

The contract covers more than 30 Frame 7EA gas turbines for the Saudi Electricity Co.’s Riyadh Power Plant 10, Fairfield, Connecticut-based GE said in a statement today. GE has now sold about 200 turbines in Saudi Arabia, said Steve Bolze, who oversees power generation at GE Energy, in an interview.

GE Energy is benefiting from increased electricity demand in the Middle East and has announced orders from Saudi Arabia, Kuwait, Qatar and Algeria valued at billions of dollars since 2007. The Saudi agreement was booked in December 2008 and brings orders from that country to almost $2.5 billion in the past three years.

“We definitely see ongoing growth in the Middle East, it’s not just in Saudi Arabia,” Bolze said. “It all boils down to timing.”

Today’s order will add 2,000 megawatts of power to help address summer energy shortages. When completed, it will increase the power capacity in Saudi Electricity’s Central Operating Area by 20 percent from its output of 10,000 megawatts now. Turbines announced today will enter service in 2010 and 2011. GE this year also opened a service center in Dammam, Saudi Arabia. Service components of turbine contracts lock in a higher-margin revenue stream over years.

GE Energy had revenue of $29.3 billion last year, out of the company’s total $182.5 billion. GE rose 32 cents to $11.94 at 4:15 p.m. in New York Stock Exchange composite trading and has dropped 65 percent in the past 12 months.

Largest Order

The unit in December signed its largest single order, for 56 turbines and services valued at about $3 billion. The company said on Jan. 23 that it sold about 188 gas turbines in 2008 and may sell about 185 this year. While “a few” power generation projects globally may be shifting to a later date in the short term, demand is still strong because of population trends and rising standards of living, Bolze said.

“With the whole economic environment, there are people that are really taking second, hard looks at their projects,” Bolze said. “But if you look at the medium to long term, the demand for power is still there.”

To contact the reporter on this story: Edmond Lococo in Boston at elococo@bloomberg.net.

Last Updated: February 11, 2009 16:38 EST