GE to Provide Close to $600 Million in Turbomachinery Equipment for Russia’s Yamal LNG Megaproject

  GE to Provide Close to $600 Million in Turbomachinery Equipment for Russia’s
  Yamal LNG Megaproject

  *Yamal Peninsula Project Marks GE’s First LNG Project in Arctic Region
  *GE Providing Yamal LNG with Integrated Equipment Package to Power Three
    LNG Trains
  *The Megaproject to Serve as Model for Russia’s Growing LNG Industry

Business Wire

HOUSTON -- October 2, 2013

GE (NYSE:GE) has received a contract to provide key turbomachinery equipment
for the Yamal liquefied natural gas (LNG) “megaproject” that is being
developed on the Yamal Peninsula in Russia’s northern Siberia region. The LNG
produced at the site will be used to help meet the growing energy needs,
primarily of Asia and Pacific Region countries.

The LNG megaproject is owned by JSC Yamal LNG, a joint venture between
Russia’s largest independent gas producer OAO Novatek (80 percent) and
France’s Total SA (20 percent). The project is being implemented in the Arctic
zone of Russia, in the Yamal Peninsula, near Sabetta port. The joint venture
is building a gas liquefaction facility that will have a production capacity
of 16.5 million tons per year, based on the feedstock resources of the South
Tambeyskoye gas condensate field. Proved and probable reserves of natural gas
(PRMS) of the South Tambeyskoye field exceed 900 BCM (32 tcf).

Underscoring its leadership in the LNG sector, GE Oil & Gas is supplying
Technip (France) and JGC (Japan) consortium, the LNG plant EPC contractor,
with critical turbomachinery equipment for three production lines (or
”trains”), each with the capacity to produce about 5.5 million tons of LNG a
year. Each train will consist of two main refrigeration units that turn
natural gas into a liquid form for transportation. Both refrigeration units
will feature:

  *An 86-megawatt (MW) Frame 7E gas turbine.
  *Three main refrigerant centrifugal compressors (two mixed refrigerant and
    one propane).
  *A 24-MW variable speed drive starter/helper.
  *Waste heat recovery units (WHRUs).
  *Associated auxiliary equipment.

In all, GE will supply six Frame 7E gas turbines, 18 centrifugal compressors,
six variable speed drives and six WHRUs. The turbines will be manufactured at
GE Power & Water’s plant in Greenville, S.C., and the compressors will be
manufactured at GE Oil & Gas’ facility in Florence, Italy. Two complete
turbo-compressor systems also will be tested at GE Oil & Gas’ facility in
Massa, Italy. Meanwhile, GE Power Conversion facilities in France will supply
the variable speed drives. In addition to equipment supplies the contract also
covers installation supervision and GE experts support at commissioning stage.

In addition to equipment supplies, GE Oil & Gas also will provide installation
supervision and GE’s expert support at the commissioning stage.

GE is expected to deliver its equipment to Russia in the second half of 2015.
According to the project plans, the first natural gas liquefaction train is to
reach its full capacity in 2017, followed by the second and third trains in
2018 and 2019, respectively.

“GE is supporting some of the world’s largest LNG projects, and the Yamal LNG
megaproject is an exciting example of how our deep expertise in integrated LNG
technology and life cycle services is helping the Russian/CIS region secure
its energy future,” said Rafael Santana, CEO and president—turbomachinery for
GE Oil & Gas. “The Yamal LNG project, which is located in one of the harshest
climates in the world, will serve as an important showcase for how
collaboration and advanced technologies are solving some of the world’s most
complex energy challenges in remote and extreme conditions.”

GE is a leading technology supplier for Russia’s oil and gas sector. More than
400 gas turbines, 65 steam turbines, 700 compressors and more than 600 units
of other equipment—including air coolers, condensers, gas separators and
pumps—produced by GE Oil & Gas and GE Power & Water have been installed in
Russia and in the CIS region.

GE’s 7E gas turbine is a durable and dependable “work horse.” Since its
introduction more than 40 years ago, the 7E gas turbine has demonstrated
durability and highly reliable starting capability in nearly 1,200 operating
units with more than 29 million hours of service across a wide range of
applications. Operating with GE’s Dry Low NO[x] combustion technology, the 7E
gas turbine can achieve industry-leading emissions, enabling users to meet
today’s increasingly stringent air quality standards.

GE Power Conversion offers a complete electrical portfolio—including advanced
motor, drive and control technologies—to support the electrification of the
LNG, subsea, transportation and storage segments of the global oil and gas

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
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visit the company's website at

About GE Oil & Gas

GE Oil & Gas is a world leader in advanced technologies and services in oil
and gas sector with engineering centres and production facilities in Europe
and USA. GE Oil and Gas is offering integrated solutions for production,
transportation, storage and processing of oil and gas, gas liquefaction,
petrochemical sector, and creation of oil and gas integrated transportation
systems including pipeline systems studies and evaluation.

We develop smart solutions for our customers across the oil and gas value
chain delivering the innovation, customized service solutions, training
programs and technology that helps them to maximize their efficiency,
productivity and equipment reliability to fully benefit from the megatrends of
natural gas, the growth of subsea and hard-to-reach reserves . Our unrelenting
commitment to the environment, health and safety, quality and integrity
defines us: it’s The Way We Work.

We partner with our customers to develop unique technically challenging
projects and their next generation workforce. GE Oil & Gas team includes
43,000 employees in more than 100 countries. Follow GE Oil & Gas on Twitter


GE Oil & Gas
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Sara Hassett, +39 055 423 3361
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