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

abarrelfullabarrelfull wrote on 05 Oct 2013 08:00
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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, 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.”


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