GE's Power Business Wins Gas Contract - Analyst Blog


GE Power & Water, a segment of General Electric Company ( GE ), declared that its distributor Clark Energy has won a contract to deliver 19 new Jenbacher gas engines to Australia Pacific LNG.

Clark Energy is General Electric's authorized distributor for its Jenbacher gas engines in Australia. The three-megawatt (MW) Jenbacher J620 gas engines will be used at two on-site power projects in rural Queensland. These engines will generate around 57 MW of reliable electricity at two coal seam gas (CSG) processing facilities, presently under construction.

The ownership, operation and maintenance of both projects will be conducted by Clarke Energy, supported by its network of field service technicians and experienced staff. Both the projects will employ Clarke Energy's modular power station concept, wherein the gas engine generation set is placed in a separate enclosure to ensure safer and more efficient operation and maintenance.

Per the agreement, Clarke Energy is required to design and build a fully operational temporary power station, with 9 Jenbacher gas engines generating 27 MW at Eurombah Creek and 10 units generating 30 MW at Reedy Creek. The setup will use locally extracted coal seam gas in order to supply constant power supply to the facilities, until the installation of permanent electrical infrastructure.

Australia Pacific LNG is an incorporated joint venture between Origin Energy, Sinopec and ConocoPhillips. This project is a step forward in the development of CSG processing facilities in Queensland.

With rapid development of CSG and offshore natural gas reserves, Australia is emerging as a key alternative LNG supplier to Asia and other areas of the world. Consequently, Clark Energy's on-site power plant projects are turning out to be a significant growth driver for GE Power & Water, as it explores new profitable avenues while offering seamless life-cycle services to customers.

Headquartered in Cincinnati, OH, GE Power & Water's Distributed Power business is a foremost provider of power equipment and engines and services, specializing in power generation at or near the point of use. As Australia further develops its energy infrastructure, General Electric is witnessing healthy demand for other power, water filtration and oil and gas production technologies and services as well.

General Electric currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the industry include Icahn Enterprises, L.P. ( IEP ), CLARCOR Inc. ( CLC ) and Noble Group Ltd. ( NOBGY ), each carrying a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CSG , CLC , GE , IEP , NOBGY

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