New agreement in Qatar brings GE Energy's total service commitments at site to more than $1bn

The project supports Qatar's strategy to become the world's leading supplier of LNG.

An LNG train is a chain of equipment, including a gas turbine, which is used to convert natural gas to liquid form. This process reduces the volume of the gas, making it easier to ship large quantities of LNG to help meet growing energy demands in locations around the world.

The new contractual service agreement (CSA) covers LNG trains 6 and 7 and AKG Plant-2 at the site and follows similar agreements previously signed for RasGas LNG trains 1-5 and AKG Plant-1, bringing GE's total services commitment at the site to more than $1 bn.

"Our contractual service agreements can help improve the reliability of LNG and gas production and help minimize equipment downtime at the RasGas complex, which is a major contributor to the continuing economic growth of Qatar," said Joseph Anis, GE Energy's region executive for the Middle East.

"Trains 6 and 7 will increase capacity at the site, helping RasGas meet the global demand for LNG." He added that the new agreements "underscore our commitment to provide long-term support for our key customers, such as RasGas, throughout the Middle East, one of the largest growth areas for GE in the world today."

Over the next few years, Ras Gas plans to begin supplying LNG to a range of new customers around the world, possibly including the United States, following the startup of train 6, and Asia following the startup of train 7.

Speaking at the signing ceremony, Hamad Rashid Al-Mohannadi, RasGas managing director (CEO) said, "The latest service agreement builds upon the strong relationship that we have forged with GE Energy over the years. It is critical for us to have access to proven technology and world-class services that are customized for our specific needs, allowing us to maintain the reliability of our LNG and gas production. This agreement also will support us in continuing to provide our clients around the world with clean, efficient energy."

Engineering and construction work for trains 6-7 began in 2005. Train 6 is scheduled to come on line in 2008 and train 7 in 2009.

The new CSAs will cover six GE Frame 9E gas turbines and seven GE Frame 6B gas turbines to be used for compression and power generation service on trains 6 and 7 and AKG-2 Plant. In total, the GE CSAs for trains 1-7 and AKG 1 and 2 cover 35 gas turbines at the site for a period of 24 years.

GE Energy's CSAs are designed to help improve the reliability and availability of gas turbines for the length of the agreement. GE also is able to offer performance guarantees that provide an incentive for increasing the time between outages, which could result in greater productivity for an extended period of time.

RasGas Company Limited is owned by Qatar Petroleum and ExxonMobil RasGas Inc. RasGas operates production facilities to treat, liquefy and export LNG to countries across Asia, Europe and the United States of America. Based in Ras Laffan, Qatar, RasGas currently produces more than 20 million metric tonnes of LNG per year (Mta) with five trains in operation. It is expected that this production will be approximately 37 Mta by the end of the decade, with the completion of seven operational trains.

GE's relationship with Qatar's natural gas and LNG industries goes back more than 35 years and GE technology is well established in the nation. GE-designed gas turbines, compressors and generators have been operating throughout Qatar since the 1980s.