GE signs service deal with Cheniere for Sabine Pass LNG project

General Electric (NYSE: GE) and Sabine Pass Liquefaction, a subsidiary of Cheniere Energy Partners LP (NYSE MKT: CQP), have entered into a $1bn, 20+-year service contract under which GE will provide spare parts and technical support for the gas turbines and refrigerant compressors on the first four liquefied natural gas (LNG) trains currently under construction at the Sabine Pass LNG export facility

Each train will have six gas turbines and is expected to have nominal capacity to produce about 4.5 million metric tons per annum (mtpa) of LNG.

“We need the right technology and service partner to support our facilities and ensure that we can deliver reliable production from our Sabine Pass LNG export facility. Our trains will have 24 GE gas turbines that will drive the refrigerant compressors,” said Keith Teague, president and COO, Cheniere Energy Partners, in a Dec. 18 statement. “GE’s ability to service the equipment and provide full on-site technical support to ensure optimal reliability was an important factor in our selection. Support for our terminal will come from their Houston, Cincinnati and Atlanta facilities as well as other locations across the United States.”

“GE continues to be a major supporter of the U.S. LNG export boom,” said Rafael Santana, CEO & president—Turbomachinery Solutions for GE Oil & Gas. “The contract with Cheniere at Sabine Pass will support the production of approximately 18 million mtpa of LNG from the first four LNG trains. We’re pleased that our well-proven technology was selected for the Sabine Pass Liquefaction facility and that Cheniere also will rely on our services expertise.”

The contract announced Dec. 18 will see GE provide services that cover all major maintenance for the first four LNG trains, including parts, repairs and field services as well as a resident team of 14 local experts including field and repair services to assist with all aspects of maintenance on the GE equipment. GE also will provide access to original parts, supported by the technical expertise of GE’s field engineers, which will ensure optimal reliability.

GE will be supplying services for twenty-four PGT25+ G4 gas turbines to power the LNG trains, and fifty-six centrifugal compressors.

Cheniere Partners owns and operates the existing Sabine Pass regasification terminal and the 94-mile Creole Trail Pipeline in southwestern Louisiana. Cheniere Partners is developing a liquefaction project adjacent to the Sabine Pass LNG terminal for up to six LNG trains with aggregate LNG export production volumes of approximately 27 mtpa. Construction has begun on LNG Trains 1 through 4. Trains 5 and 6 are in the permitting process, which is expected to be completed in 2015.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.