GE signs $610m maintenance services agreement with Cheniere Energy

GE Oil & Gas has signed an agreement worth $610m with Cheniere Energy’s subsidiary Corpus Christi Liquefaction to provide maintenance services for the gas turbines and refrigerant compressors on the first two LNG trains.

Under the terms of the 20+year expanded contract service agreement, GE will also provide spare parts and planned inspections, technical support.

At present, the trains are under construction at the Cheniere’s LNG export facility in Corpus Christi, Texas, US.

With six gas turbines, each train is expected to produce about 4.5 million tonnes per annum (mtpa) of LNG.

GE is set to begin construction of equipment on site in January 2017 and LNG production is slated to commence as early as 2018.

Under the contract, which will incorporate all major maintenance including parts, repairs and field services for the trains, GE will also provide a resident technical support team at Cheniere’s facility.

GE Oil & Gas Turbomachinery Solutions CEO and president Rafael Santana said: "This announcement further underlines GE’s commitment to natural gas and the ability of GE Oil & Gas to provide premium equipment as well as services.

"Using GE’s specialist monitoring and maintenance expertise, we will also optimise the availability and reliability of Corpus Christi plant."

In December 2014, both the companies announced a similar $1bn maintenance agreement for the LNG export terminal, located in Cameron Parish, Louisiana, US.

The terminal is located on over 1,000 acres of land along the Sabine Pass River on the border between Texas and Louisiana.

Cheniere Asset Group executive vice president Keith Teague said: "North America will become a significant LNG supplier to global markets and our facilities will represent a substantial portion of these LNG exports.

"This agreement with GE contracts a significant portion of the estimated maintenance service requirements at Corpus Christi, similar to what we achieved at Sabine Pass."

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Image: GE Oil & Gas and Cheniere Energy sign expanded contract service agreement. Photo: courtesy of General Electric