GE Signs $3 Billion Power Generation Agreement with Iraq
GE Energy, a subsidiary of General Electric (NYSE:GE) (Fairfield, CT), has signed a $3 billion contract with Iraq's government to supply power generation equipment and services. According to a report by Industrial Info Resources (Sugar Land, TX), the deal is of paramount importance to Iraq in developing the country's energy infrastructure and enhancing its power generation.
According to the deal, which is one of the largest single orders for GE, the company will supply 56 heavy-duty frame 9E multifuel gas turbines that can generate up to 7,000 megawatts (MW) of power. The turbines will be built in manufacturing facilities in South Carolina and France and will be delivered over the next two years. The equipment will play a pivotal role in supporting the country's electricity grid. Iraq currently generates 6,000 MW of electricity daily while the domestic demand is estimated to be about 10,000 MW. Once the new power equipment from GE is installed at key locations across Iraq, the country's power output will almost double. GE's fleet of 9E turbines are installed at 400 locations worldwide and has a good track record for performance and reliability. In all, GE has 6,000 gas turbine installations globally and has more than 200 million hours of operating experience to its credit.
GE, as part of the contract, will also offer technical advisory services, performance testing, maintenance and spare parts to facilitate proper functioning of the turbines. The company will provide training to personnel from Iraq on management and technical aspects of the equipment. This will help it to build a stronger and self-sustaining work force in the power sector for future development.
GE's association with Iraq on infrastructure projects goes back to the 1970s. The most recent order bagged by the company was in May 2008, to supply eight gas turbines capable of producing 600 MW of electricity. Iraq has been reeling under a power crisis and this small supply of turbines was intended at meeting short-term power generation requirements. There are 120 turbines installed in Iraq presently. Oil and gas, aviation, water processing, and healthcare are some of the other sectors that GE is involved in the country.
From Industrial Info Resources
