GE Oil & Gas to supply Saudi Aramco with High-Efficiency gas compression trains
Contract Covers the Supply of 12 Gas Compression Trains and a Long-Term Service Agreement
RIYADH, SAUDI ARABIA—November 26, 2014—Highlighting its commitment to further support the oil and gas sector of Saudi Arabia, GE Oil & Gas (NYSE: GE) marked an industry milestone with the award of a contract by Shandong Electric Power Construction Corp (SEPCO) to manufacture and assist with the commissioning and startup of 12 high-efficiency gas compression trains, each consisting of an aeroderivative gas turbine and a pipeline centrifugal compressor, for the Master Gas System Expansion Project in Saudi Arabia.
The contract underlines GE’s localization commitment with six of the gas compression trains to be assembled locally at the GE Manufacturing Technology Center in Dammam. Moreover, work is in progress to expand and modify the Center to meet the localization commitment and create more jobs for Saudis.
The scope of work also includes a long-term service agreement with the option of renewal. GE Oil & Gas will also extend training for Saudi Aramco personnel on the supplied units and the control system at GE’s overseas facility and customer site.
Rami Qasem, President & CEO of GE Oil & Gas for the Middle East, North Africa and Turkey, said: “We are thankful to Saudi Aramco, our long-term customer, for their support and trust in our tech-solutions. The contract sets a benchmark for GE Oil & Gas in the Kingdom, as it not only marks the first time such high-efficiency technology is introduced in Saudi Arabia, but also demonstrates our local manufacturing competencies.
“This is a good fit with our strategy for the Kingdom to support our customers with the most advanced technologies that add to their operational efficiency as to promote a culture of localization, which in turns boosts the local manufacturing sector and promotes exports.”
He added: “The expansion of the GE Manufacturing Technology Center, which is part of the US$1 billion investment commitment by GE in the Kingdom, brings us closer to our customers, and enables us to provide technology and repair support at short lead times. We will also establish local shop repair for the supplied equipment further adding to our promptness in customer service delivery. A number of Saudi professionals will be hired for the project while Saudi nationals will be trained at GE Manufacturing Technology Center on the packaging of the compressor train and other services.”
The PGT25 power turbine components have been designed taking into account many years of experience gained by GE in the field by heavy duty gas turbines and axial/centrifugal compressors. The aerodynamic blading was planned with the main objective of obtaining very high efficiency at both design and reduced speeds.
From providing the first turbomachinery for Saudi Arabia’s early oil expeditions and building partnerships with public and private sector entities for over 80 years, GE Oil & Gas has a strong heritage of working with Saudi Aramco. The company’s compressor fleet in Saudi Arabia now numbers about 100, having doubled since 2010. GE’s compressor trains have been installed within most of Saudi Aramco’s new plants or expansion projects, and GE Oil & Gas has a Corporate Procurement Agreement with Saudi Aramco to extend the coverage of its support and services.
As part of its focus on strengthening technical skills in Saudi professionals, GE Oil & Gas also offers internship opportunities for them in Florence, Italy in addition to having hosted the Oil & Gas University. Products supplied by GE Oil & Gas to Saudi Aramco include wellheads and connectors, and electric submersible pumps have been supplied for enhanced oil recovery from wells in Saudi Arabia.