GE received a 16-year service contract extension valued at $333 million for Sakhalin-2, an integrated oil and gas project that operates in the harsh subarctic environment of Sakhalin Island in the Russian Far East.
The MOU covers a wide range of GE technology options, including aeroderivative gas turbines, gas engines, coal gasification and wind power.
The service contract extension covers four GE Frame 7EA gas turbines that drive the process trains for Sakhalin's liquefied natural gas (LNG) plant and five GE Frame 5 gas turbines that are used for electricity production at the site.
Sakhalin Energy operates the project under a production sharing agreement with the Russian Federation. LNG is produced using technology that was developed by Shell to ensure maximum production during severe Sakhalin winters. The production capacity of the plant is 9.6 million tons of LNG per year, most of which is exported to Korea and Japan.
The extension to the Sakhalin Energy-GE contractual services agreement (CSA) for maintenance and services on Sakhalin Energy's LNG plant gas turbines has been approved by Sakhalin Energy's shareholders and Russian stakeholders. This adds two cycles to the existing CSA, will deliver more production availability and represents a significant commitment to the use of local content.
The GE service agreement includes planned and unplanned outages, parts and repairs, an availability guarantee, remote monitoring and diagnostics and an on-site GE team of technicians. The agreement will be supported by GE's technology and services center in the Kaluga region of Russia.