GE Awarded US$620 Million Services Contract in Australia for QGC

  GE Awarded US$620 Million Services Contract in Australia for QGC

  *Innovative Technology Services Key to Long-Term Plant Reliability
  *QGC Building the World’s First Facility to Turn Coal Seam Gas into LNG
  *GE Regional, Global Resources to Support Project

Business Wire

BRISBANE, Australia -- March 19, 2013

GE Oil & Gas (NYSE: GE), a leading supplier of equipment and services for
liquefied natural gas (LNG) projects worldwide, has received a US$620 million,
22-year contractual service agreement (CSA) to provide a broad range of
advanced technology services for QGC’s Queensland Curtis LNG (QCLNG) plant off
the east coast of Australia.

QGC, parent company BG Group, and GE executives, including GE Chairman and CEO
Jeff Immelt, were present at the signing of the CSA today in Australia.

One of Australia’s largest infrastructure projects, the QCLNG plant will be
the world’s first facility to turn coal seam gas into LNG. Coal seam gas is
plentiful in Australia and will form the basis for the growing Australian LNG
industry. The QGC plant is the first of four LNG projects scheduled for Curtis
Island and is expected to begin production in 2014, with the LNG produced
primarily targeted for export including to China, Japan and Singapore.

In welcoming the contract, Immelt said, “The QGC project on Curtis Island is a
glimpse of the future. As the world’s first facility to turn coal seam gas
into LNG, it validates Australia’s commitment to innovative solutions and its
position as a leader in LNG.”

“It is also a great example of how industrial internet-based services—where we
connect advanced machines, data and experts—can deliver better outcomes for
our customers and society. GE is proud to be QGC’s partner in providing
advanced technologies and services that enable reliable production of LNG and
help meet the growing global demand for energy,” Mr Immelt said.

The GE scope of work will include planned and unplanned maintenance of the GE
equipment being installed at the QCLNG plant, including 15 PGT25+G4
aeroderivative gas turbines, 28 centrifugal compressors, gearboxes, generators
and all auxiliaries. The agreement also includes monitoring and diagnostic
services, as well as reliability guarantees on the equipment.

In announcing the contract, BG Group Chief Executive Chris Finlayson said, “As
construction of the QCLNG Project passes the half-way mark we are increasing
our focus on how we are going to operate the facilities safely and efficiently
in the decades ahead. BG Group is committed to reducing emissions through
advanced, proven technologies and design.”

“Using GE’s technology will contribute to the QCLNG plant being one of the
most emissions-efficient facilities of its kind in the world. Liquefied
natural gas has an important role to play in the management of global
greenhouse gas emissions. When used as a substitute for coal, particularly in
developing economies, liquefied natural gas from the QCLNG Project could
reduce greenhouse gas emissions by more than 35 percent,” Mr Finlayson said.

The QCLNG project will be supported by GE resources in the Asia Pacific region
and worldwide. Maintenance activities on the power turbines and compressors
will take place at GE Oil & Gas facilities in Jandakot, Western Australia and
in Florence, Italy. Monitoring and diagnostics will be provided from GE Oil &
Gas’ global iCenters, located in Florence, Houston and Kuala Lumpur. These
centers house teams that constantly track and advise on the performance of
installed equipment, enabling customers to optimize plant availability and
life cycle of parts.

This ability to ‘predict-and-prevent’ service and maintenance issues through
the industrial internet—a connected network of technology, data and experts—is
a core part of GE’s strategy to deliver the most advanced service solutions to
its customers.

QGC is part of the international BG Group that was formed in 1996. The
Queensland Curtis LNG project draws upon QGC’s extensive coal seam expertise
and BG Group’s international experience in LNG, at a time of rising global
demand for cleaner, more efficient energy. LNG also helps to address climate
change by allowing natural gas, which has the lowest carbon emissions of all
fossil fuels, to be transported economically around the world.

Further demonstrating GE’s broad portfolio of products and services for the
LNG industry, GE Power & Water has supplied on-site power generation and water
filtration equipment for the new water treatment plant near Chinchilla in
Queensland to support the QCLNG project.

QGC is headquartered in Brisbane and is engaged in the exploration,
evaluation, development and production of coal seam gas. QGC’s project
supports the country’s efforts to leverage its coal seam gas resources to
become the world’s leading exporter of LNG. Australia now has under
construction 70 percent of the world’s LNG capacity, capable of supporting
40-50 years of production, according to Australia’s Bureau of Resources and
Energy Economics. With this high level of activity, the LNG industry is
playing a key role in Australia’s long-term energy security, economic growth
and job creation.

About GE

GE (NYSE: GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in energy,
health and home, transportation and finance. Building, powering, moving and
curing the world. Not just imagining. Doing. GE works. For more information,
visit the company's website at www.ge.com.

About GE Oil & Gas

GE Oil & Gas is a world leader in advanced technologies and services with
37,000 employees in more than 100 countries supporting customers across the
industry—from extraction to transportation to end use. Making the environment,
health and safety, quality and integrity our highest priorities is The Way We
Work. Our technologies and services include: surface and subsea drilling and
production, monitoring and diagnostics, measurement and controls, large-scale
LNG, pipeline compression and inspection, well site and industrial power
generation, technologies for the refining and petrochemical industries, and
modular CNG and LNG units for transportation sectors. Through our customized
service solutions, training programs and technologies, GE Oil & Gas partners
with customers to maximize their efficiency, productivity and equipment
reliability; develop their next generation workforce; and fully benefit from
the megatrends of natural gas, the growth of subsea and hard-to-reach reserves
and the revolution in asset health management.

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Contact:

GE Oil & Gas
Stuart McLagan, +61 458 755 117
or
N2N Communications
Laura Tallett, +61 415 084 531
or
Masto Public Relations
Ken Darling, +1-518-786-6488
kenneth.darling@ge.com
 
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