GE Oil & Gas Wins Another Contract for Australia's Gorgon Gas Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--GE Oil & Gas (Florence, Italy), a division of General Electric Company (NYSE:GE) (Fairfield, Connecticut), has once again won a significant contract in the development of the Gorgon gas project in Western Australia.

Only a few months after winning a $400 million contract to supply liquefied natural gas (LNG) and carbon dioxide re-injection equipment to one of the world's largest untapped natural gas fields and carbon-sequestration projects, GE has won a contract to supply gas turbines for the power supply for the gas treatment and liquefaction facilities on Barrow Island off the West Australian coast.

The latest contract was awarded by Chevron Corporation (NYSE:CVX) (San Ramon, California), the major stakeholder in the Gorgon project, holding a 50% stake in the project. Other stakeholders in the project include Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) and Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas), which hold 25% each.

Under the contract, GE will supply five 130-megwatt Frame-9 gas turbines in a modularized solution to the power requirements for the gas treatment and liquefaction facilities on Barrow Island. The turbines will be built in Belfort, France, and Florence, Italy, and pre-assembled into modules and fully tested in Massa, Italy, before shipment to Barrow Island between July 2012 and the middle of 2013.

GE signed a five-year agreement with Chevron in May 2008 to supply a subsea production system that will total about 10,000 tons of structures to be installed between 60 kilometers and 140 kilometers offshore from Barrow Island, at depths ranging from 200 meters to 1,350 meters.

The equipment for this project will include twenty 7-inch subsea trees and wellheads, together with five pipeline termination systems and manifolds and other equipment. The complete subsea installation will be remotely controlled from Barrow Island. GE will supply the production control systems.

Equipment for the subsea project will be manufactured at locations across the world, including Norway, Singapore and the United Kingdom. Supply of equipment will be managed by GE's office in Perth, Australia, which expects deliveries to commence in the second quarter of next year.

The contract between GE and Chevron, which was signed in October last year for LNG refrigeration and carbon dioxide re-injection equipment, covers six Frame-7 gas turbines driving three main refrigerant compressor trains, and six compression trains for the carbon dioxide sequestration project.

The Frame-7 mechanical drive gas turbines will be constructed at GE's facility in Greenville, South Carolina, while the refrigerant compressor trains will be manufactured in Florence and Massa, Italy, where they will be joined with the gas turbines from the United States and fully tested before shipment to Australia in 2011 and 2012.

The carbon dioxide compressor trains will be constructed, assembled and tested in Florence before shipment to Australia in 2011 and 2012. The compressor trains will be used to inject carbon dioxide extracted from the natural gas prior to liquefaction into depleted natural gas wells at depths of 1,300 meters.

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