Boilers, Coal, Gas

GE signs $1bn service contracts with Algeria

25 November 2008 – GE Energy has agreed to provide service agreements worth more than $1bn to Algeria’s state-owned power company Sonelgaz.

The deal involving GE Energy includes an 18-year contractual service agreement for a power plant east of Algiers, a six-year maintenance program for turbines at 12 other Sonelgaz power plants and services to increase the output of gas turbines, the company said in a statement.

‘Algeria continues to be a rapidly expanding market and is a keystone country for us,’ Diarmaid Mulholland, general manager of GE Energy Services Europe, told Reuters, noting that about 70 per cent of power in Algeria is generated by GE technology.

According to Algeria’s Ministry of Energy and Mining, power demand will reach an estimated 14 GW in 2010, almost double the 2006 level.

Mulholland said globally industry was looking for advanced technologies to help satisfy energy needs and reduce carbon output.

He said that while there are signs that some global energy projects that depend on capital markets for funding are being slowed down, these are merely timing issues. He added that GE’s strong orders backlog was also security against economic downturns.

The service agreements with Sonelgaz will help improve efficiency, output and reliability of 51 gas turbines installed in 13 power plants across Algeria, GE said.