GE Oil & Gas Wins $400 Million Contract For Gorgon LNG Project In Australia

Published: 21-Oct-2009

GE Oil & Gas has been awarded a competitive bid, worth over $400 Million, to deploy liquefied natural gas (LNG) technology for the development of Gorgon natural gas fields. Chevron Australia Pty Limited (with 50% interest) operates the Gorgon project in joint venture with the Australian subsidiaries of Exxon Mobil Corporation and Royal Dutch Shell Plc (each with 25% interest).

GE Oil and Gas will supply Chevron with equipment to fulfill Gorgon’s LNG production and CO2 sequestration, as follows:

-- Three main refrigerant compression trains required for Gorgon’s production of 15 million tonnes per annum (MTPA) LNG – equating to three shipments a week leaving Gorgon’s purpose-built LNG loading jetty; and,

-- Six compression trains required to drive Gorgon’s carbon dioxide sequestration (C02) project.

Claudi Santiago, president and chief executive officer of GE Oil & Gas said: “I am delighted that GE Oil & Gas has been selected by Chevron to deliver this technologically complex project which will deliver cleaner energy on an unprecedented scale. The contract consolidates our global LNG technology leadership position and our competitive edge in pioneering CO2 sequestration applications. Gorgon demonstrates our customer commitment to Innovation Now solutions based on safe and reliable technology transfer and our partnership role in milestone projects shaping the future of world energy.”

The Gorgon natural gas fields are located at Barrow Island, around 130 kilometers off Western Australia. Gas will be extracted and delivered via subsea and underground pipelines to gas treatment and liquefaction facilities on Barrow Island's south east coast.

Three 5-MTPA GE main refrigerant compression trains, each comprising two GE Frame-7 gas turbines plus latest technology liquefaction compressors, will be utilized for the production of LNG by chilling to –160°C, ready for shipping, before re-gasification and pipeline transportation for use by domestic and industrial customers.

Prior to liquefactioncarbon dioxide (CO2) will be stripped out and injected into the depleted natural gas wells 1,300-meters deep to ensure its safe storage and the reduction of emissions. Six surface operating, 15 MW electric-motor driven GE compression trains will be deployed.

The GE main refrigerant compression trains and the GE compression trains for CO2 sequestration will be manufactured and tested in Florence and Massa, Italy, then shipped in 2011 and 2012.

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