GE Oil & Gas has secured a 16-year service contract extension, worth $333m, for Sakhalin-2 liquefied natural gas (LNG) plant in the Sakhalin Island, Russia.
As part of the contract extension, GE will supply four GE Frame 7EA gas turbines, which will drive the process trains for Sakhalin’s LNG plant and five GE Frame 5 gas turbines, which can be used to produce electricity at the site.
The service agreement will also include planned and unplanned outages, parts and repairs, availability guarantee, remote monitoring and diagnostics, as well as on-site GE team of technicians.
GE will provide its support from its technology and services centre located in the Kaluga region of Russia.
Sakhalin Energy operates the project, under a production sharing agreement with the Russian Federation which uses Shell developed technology to produce LNG to the maximum production levels even during the harsh winters in Sakhalin.
The plant can produce up to 9.6 million tonnes of LNG per year, which will be exported to Korea and Japan.
The service agreement was announced during the Russia Power event in Moscow, where GE signed a memorandum of understanding (MOU) with the Sakhalin provincial government.
As a part of the MOU, GE will work with Sakhalin provincial government to develop power generation projects in the Sakhalin Island. The MOU includes GE technology options such as aeroderivative gas turbines, gas engines, coal gasification, and wind power.