Exclusive-GE Vernova, Siemens Energy in talks to supply gas turbines for Syria reconstruction, sources say

By Timour Azhari and Christoph Steitz

RIYADH/FRANKFURT (Reuters) -U.S. firm GE Vernova and Germany's Siemens Energy are in talks to supply gas turbines to a $7 billion project aiming to rebuild Syria's war-damaged power sector, three people familiar with the matter told Reuters.

Syria signed a deal with a subsidiary of Qatar's Power International Holding in May to build four combined-cycle gas turbine power plants with a total capacity of 4,000 megawatts. The agreement also includes a 1,000-MW solar component.

Siemens Energy and GE Vernova could both be awarded contracts for the project, one of the people said, adding, however, that it was too early to say when agreements might be concluded.

Details of the amount budgeted for the turbines under the project were not available. And none of the three sources would estimate how much the turbine contracts might be worth.

The talks could also lead to agreements beyond turbines, including the supply of critical power grid infrastructure, another of the sources said.

WESTERN COMPANIES LOOK TO BENEFIT FROM RECONSTRUCTION

The successful conclusion of deals would make Siemens Energy and GE Vernova among the first Western companies to benefit from the reconstruction of Syria's power sector, since U.S. President Donald Trump lifted most sanctions on Damascus earlier this year.

Siemens Energy told Reuters that "a local delegation met with Syrian decision-makers to explore how the country's power supply could be improved in the short term."

"While no specific agreements or contracts have been made, we are ready to contribute our technical expertise if it can help establish and stabilise a reliable energy supply and support the population," a spokesperson for the company said.

GE Vernova and PIH did not respond to requests for comment. Syria's information ministry also did not immediately respond to a request for comment.

REVIVING AN ENERGY SECTOR CRIPPLED BY WAR

Following the rebel-led ouster of longtime President Bashar al-Assad late last year, Syria has pursued a strategic realignment away from Iran under its new leader, President Ahmed al-Sharaa, who met with Trump in Washington this week.

U.S. firms Baker Hughes, Hunt Energy and Argent LNG said in July they planned to back post-war reconstruction with a masterplan to explore and extract oil and gas and produce power.

Due to the destruction of energy infrastructure during its 14-year civil war, Syria today produces just a fraction of the electricity it needs, though the supply of power has improved notably in recent months thanks to gas from Azerbaijan and Qatar.

On Wednesday, UAE-based Dana Gas, said it had signed a preliminary deal with Syria's state oil company to assess redeveloping natural gas fields crippled during the war.

Syria's domestic natural gas production is estimated to have declined to 3 billion cubic metres in 2023 from 8.7 bcm in 2011 due to the war.

(Reporting by Timour Azhari and Christoph Steitz; Additional reporting by Shivansh Tiwary and Francesca Landini; Editing by Adam Jourdan and Joe Bavier)