GE, CFE sign gas-fired services agreement for Mexico

Under the terms of the contractual services agreement, valued at about $200 million, GE will provide a wide range of services to support the efficient performance of the gas turbines for 15 years

Mexico City, November 7, 2011 — GE signed a long-term services agreement with Comisión Federal de la Electricidad, the Federal Electricity Commission of Mexico, covering six GE gas turbines installed for the repowering of Manzanillo Thermoelectric, the largest thermo power generation project undertaken by the Mexican government in the last two decades.

Under the terms of the contractual services agreement, valued at about $200 million, GE will provide a wide range of services to support the efficient performance of the gas turbines for 15 years. Six GE Frame 7FA Gas Turbines recently were installed at the site and the first three units are scheduled to be commissioned by the end of the year. The full plant is expected to be running by the summer of 2012, adding 900 MW of power for the CFE grid and bringing the total site output to 1,500 MW.

The new GE gas turbines are replacing two conventional boilers currently operating on fuel oil at the Manzanillo site, as part of the largest repowering initiative ever launched by the Mexican government.

The repowering project is expected to improve plant efficiency by 50 percent and reduce carbon dioxide emissions by 2,000 tons per year. The project potentially could create 80 new jobs related to the operating and servicing of the plant.

GE CSAs cover the supply of parts, repairs and field services for maintenance outages of gas turbines and generators. These long-term agreements are structured to provide customers with predictable maintenance costs while ensuring a steady flow of revenue from power plant operations. To date, GE has long-term service agreements including CSAs in place at more than 700 sites worldwide.

GE’s 60-hertz Frame 7FA Gas Turbine is one of the most advanced in the industry and is a member of GE’s family of F-class gas turbines that have accumulated more than 36 million hours of service worldwide.

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