GE Gets $1.1 Billion Order – Analyst Blog

GE Oil & Gas technology has again been selected to support the development of Gorgon, one of the world’s largest untapped natural gas fields, which also features one of the world’s largest ever carbon dioxide (CO2) sequestration technology projects.

 

GE will supply 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.

 

GE will supply Chevron (CVX)  with equipment to fulfill Gorgon’s LNG refrigeration, CO2 sequestration and power generation needs as follows: 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 tons per annum (MTPA) liquefied natural gas (LNG); and six compression trains to power Gorgon’s pioneering carbon dioxide sequestration project, one of the world’s largest, injecting up to four times more carbon dioxide than any other project worldwide.

 

In addition, GE will supply Chevron with equipment to produce gas from the offshore Gorgon and Jansz fields, as follows: twenty Subsea Trees – 7″ VetcoGray subsea trees with retrievable choke modules to control and manage the production of gas from subsea wells; twenty Subsea Wellheads – 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, thirty-four Pipe Line End Terminations and several other structures, including Pig Launchers/ Receivers and Umbilical Distribution assemblies, 45 spools and 18 multibore well jumpers;

 

The complete scope will total approximately 10,000 tons of structures in arguably one of the largest ever fabrication scopes in a subsea development project to date.

 

The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (approximately 47%), ExxonMobil (XOM) (25%) and Shell (RDS-A) (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and Chubu Electric (0.417%).

 

The subsea equipment supply will be managed from GE Oil & Gas offices in Perth, Australia.

 

GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide.

 

We currently have an Outperform recommendation on GE.