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GE pens supply agreement with Petronas

LNG Industry,

GE has signed a new seven-year Global Frame Agreement with Malaysia’s Petronas. The agreement calls for GE to supply gas turbine packages for Petronas’ onshore and offshore projects in Malaysia and other countries around the world, and includes an option to renew for a further three years.

The signing follows the successful completion of the first frame agreement between GE and Petronas signed in 2009, under which GE provided advanced turbo-compression and turbo generation technology for Petronas’ LNG Train 9 project in Bintulu, Sarawak. Another major milestone was the award of Petronas’ Floating LNG project. Designed to produce 1 million tpa of LNG, the start-up of the facility is scheduled for 2016.

“Through these collaborative agreements, we achieve the benefits of a competitive CAPEX with lower total cost of ownership, world class equipment availability and reliability and superior support from GE,” said Datuk Wan Zulkiflee Wan Ariffin, Petronas Chief Operating Officer and Executive Vice President, Downstream.


“GE is committed to reinforcing our strong, long-term partnership and collaboration with Petronas,” said Lorenzo Simonelli, CEO of GE Oil & Gas. “This new agreement allows us to be more closely aligned with Petronas so that we can better anticipate their technology needs and streamline the delivery process.”

To optimise project deadlines and reduce costs, all terms and conditions under the agreement have been negotiated for the duration of the relationship, avoiding the need to negotiate on a project-by-project basis. The equipment supplied is also standardised whenever applicable so that specifications, technical solutions and documentation are shared, resulting in lower engineering costs and quality improvements.

Second contract

At the signing ceremony on March 26, Petronas also awarded a long-term service contract to SapuraKencana GE Oil & Gas Services Sdn. Bhd., a joint venture company that GE created with SapuraKencana Berhad for the maintenance of GE turbomachinery. The formation of the joint venture underscores SapuraKencana and GE’s ongoing commitment to building local service capabilities and to develop and train the next generation of engineering and service experts in Malaysia.

“Our new venture with GE will provide a wide range of services designed to enhance equipment efficiency and performance, including local field engineers, spare parts, maintenance and repairs on GE’s fleet, which will ensure the highest reliability of the equipment for Petronas,” said Tan Sri Dato' Seri Shahril Shamsuddin, President & Group CEO, SapuraKencana Petroleum Berhad.


Adapted from press release by Ted Monroe

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