Chevron Awards Long-Term Service Agreement for Gor
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- GE Entrusted with Mission Critical Services for One of the World’s Largest Gas Projects
- 22-Year Contractual Service Agreement Follows More than $1 Billion in Equipment Orders for Gorgon Project since 2008
- Pact Highlights GE’s Breadth of Expertise in Supporting Global LNG Sector
PERTH, AUSTRALIA—July 19, 2012—GE (NYSE: GE) today announced it has signed a more than US$600 million 22-year contractual services agreement (CSA) with Chevron Australia Pty LTD to maintain the compressor trains and associated equipment that will be at the heart of the Gorgon Project off the northwestern coast of Australia.
Under the agreement, GE Oil & Gas’ Global Services division will provide Chevron Australia with scheduled maintenance, access to expertise through resident engineers, monitoring and diagnostics of the installed equipment coupled with engineering analytics, plus an inbuilt guarantee relating to continuity of production. As part of this collaboration, GE also will manage inventory, supplying initial spare components. The agreement will cover a period of 22 years, with GE’s first contract performance manager scheduled to begin working in Perth in October 2012.
“Companies around the world continue to express confidence in our services expertise, which enables them to operate as efficiently as possible over the long term. This agreement confirms our capability to meet the growing demand of the oil and gas industry for continuous monitoring and diagnostics of installed equipment globally and especially in areas that are becoming increasingly challenging from an environmental point of view. The underlying mega-trends of the oil and gas industry play to our strengths across the Oil & Gas value chain and that’s why our customers look at us for long-term partnerships,” said Dan Heintzelman, president and CEO of GE Oil & Gas.
The new CSA ensures the continued participation of Australian companies and the ongoing creation of economic growth opportunities for local communities in Western Australia. The new GE service and maintenance center in Jandakot, Perth, is expected to deliver 4,000 training days in 2013 for GE staff and employees of its customers.
About the Gorgon Project
Gorgon is one of the world's largest natural gas projects and the largest single resource natural gas project in Australia's history. The Gorgon Project will develop the Gorgon and Jansz/Io gas fields, located within the Greater Gorgon area, about 130 kilometers off the north-west coast of Western Australia. It includes the construction of a 15 million ton per annum (MTPA) Liquefied Natural Gas (LNG) plant on Barrow Island and a domestic gas plant with the capacity to provide 300 terajoules per day to supply gas to Western Australia. More information can be found on the Chevron Australia website .
The Gorgon Project is operated by Chevron and is a joint venture of the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent).
Three 5-MTPA GE main refrigerant compression trains, each comprising two GE Frame-7 gas turbines plus advanced technology liquefaction compressors, will be utilized for the production of liquefied natural gas by chilling to –160°C, ready for shipping, before re-gasification and pipeline transportation for use by domestic and industrial customers.
Prior to liquefaction of the gas, carbon dioxide (CO 2 ) will be stripped out and injected into the depleted natural gas wells 1,300-meters below the sea, to ensure its safe storage and the reduction of emissions. Six surface operating, 15-megawatt (MW) electric-motor driven GE compression trains are being deployed for this purpose.
The overall GE supply for the Gorgon projects includes:
- Five 130-MW Frame-9 gas turbines in a modularized solution to meet the power generation needs of Barrow Island’s gas treatment and liquefaction facilities.
- Three main refrigerant compression trains driven by six Frame-7 gas turbines required for Gorgon’s production of 15 million ton per annum (MTPA) LNG.
- Six electric-motor driven compression trains to power Gorgon’s pioneering C0 2 sequestration project, one of the world’s largest, injecting up to four times more C0 2 than any other project worldwide.
- 20 Subsea Trees—7” VetcoGray subsea trees with retrievable choke modules to control and manage the production of gas from subsea wells.
- 20 VetcoGray subsea wellhead systems.
- Production controls systems—used to monitor and control the complete subsea infrastructure, controlled remotely from Barrow Island.
- The supply of five pipeline termination systems, five manifolds, 34 pipeline end terminations and several other structures, including pig launchers/receivers and umbilical distribution assemblies, 45 spools and 18 multi-bore well jumpers.
About GE
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com .
GE Energy works connecting people and ideas everywhere to create advanced technologies for powering a cleaner, more productive world. With more than 100,000 employees in over 100 countries, our diverse portfolio of product and service solutions and deep industry expertise help our customers solve their challenges locally. We serve the energy sector with technologies in such areas as natural gas, oil, coal and nuclear energy; wind, solar, biogas and water processing; energy management; and grid modernization. We also offer integrated solutions to serve energy- and water-intensive industries such as mining, metals, marine, petrochemical, food & beverage and unconventional fuels.
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