General Electric Company
) recently procured a $600 million contract to supply
turbomachinery equipment for the Yamal liquefied natural gas
(LNG) project located on the Yamal Peninsula in Russia's northern
Siberia region. The joint venture project is owned by Russia's
largest independent gas producer OAO Novatek (80%) and France's
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With a production capacity of 16.5 million tons per year, the
project entails construction of a gas liquefaction facility to
meet the increasing energy needs of Asia and Asia Pacific Region.
General Electric is supplying all the critical turbomachinery
equipment required for three production lines, each of which will
have a capacity to produce about 5.5 million tons of LNG a year.
Each production line includes two main refrigeration units that
liquefy natural gas for easy transportation.
As part of the agreement, General Electric will supply six Frame
7E gas turbines, 18 centrifugal compressors, six variable speed
drives and six WHRUs (waste heat recovery units). While the
turbines will be produced at GE Power & Water's manufacturing
plant in Greenville, S.C., the compressors will be manufactured
at GE Oil & Gas' facility in Florence, Italy. GE Power
Conversion facilities in France will provide the variable speed
drives for the project.
The contract also entails General Electric to cover installation
supervision and support services at commissioning stage. The
equipment are likely to be delivered in the second half of 2015,
and the first natural gas liquefaction production line is slated
to reach its full capacity in 2017.
General Electric is one of the largest and most diversified
technology and financial services corporations in the world. With
products and services ranging from aircraft engines, power
generation, water processing and security technology to medical
imaging, business and consumer financing, media content and
industrial products, the company serves over 100 million
General Electric currently has a Zacks Rank #3 (Hold). Other
companies in the industry that are worth mentioning include
LSB Industries Inc.
), both having a Zacks Rank #2 (Buy).