GE (NYSE: GE) announced that it has received a $400 million contract to deploy compression equipment for what will be the world’s largest carbon capture and sequestration (CCS) project, under Barrow Island off Australia’s west coast.
GE’s Oil & Gas unit will provide liquefied natural gas (LNG) technology for the development of Gorgon, one of the world’s largest untapped natural gas fields.
Claudi Santiago, President and CEO of GE Oil & Gas said: “I am delighted that GE Oil & Gas has been selected by Chevron (NYSE: CVX) to deliver this technologically complex project which will deliver cleaner energy on an unprecedented scale. The contract consolidates our global LNG technology leadership position and our competitive edge in pioneering CO2 sequestration applications.”
According to the Energy Information Administration, between now and 2030 global energy consumption is projected to increase by 44% with oil and gas, along with coal, continuing to meet the largest part of that demand. The demand for natural gas–the cleanest burning fossil fuel–is expected to grow by more than 67% by 2030.
CCS is considered a dangerous distraction by many environmentalists who fear the untested technology will provide little more than an excuse to continue business as usual in regards to fossil fuel consumption.
The Gorgon project is estimated to cost approximately A$43 billion for
the first phase of development, with first gas planned for 2014.
The Gorgon Project’s estimated economic life is at least 40 years from the time of start-up, GE said. To date the Gorgon partners have signed sale and purchase agreements for LNG export into Japan and South Korea, the world’s two largest LNG import markets, as well as India and China.
The Gorgon natural gas fields are located at Barrow Island, around 130km off Western Australia. Gas will be extracted and delivered via subsea and underground pipelines to gas treatment and liquefaction facilities on Barrow Island’s southeast coast.
Three 5-MTPA GE Main Refrigerant Compression Trains, each comprising two GE Frame-7 Gas Turbines plus advanced technology liquefaction compressors, will be utilized for the production of liquefied natural gas by chilling to –160°C, ready for shipping, before re-gasification and pipeline transportation for use by domestic and industrial customers.
Prior to liquefaction, carbon dioxide (CO2) will be stripped out and injected into the depleted natural gas wells 1,300-meters deep for storage.
The GE Main Refrigerant Compression Trains and the GE Compression Trains for CO2 sequestration will be manufactured and tested in Florence and Massa, Italy, then shipped in 2011 and 2012.
In May 2008 GE Oil & Gas’ Drilling and Production business was awarded a five (5) year frame agreement to supply subsea equipment and support services for Gorgon.
Chevron Australia Pty Limited (with 50% interest) operates the Gorgon Project in joint venture with the Australian subsidiaries of ExxonMobil (NYSE: XOM) and Shell (NYSE: RDS-B)(each with 25% interest).
In Related News…
GE today called on international leaders to reach agreement on a deal through the World Trade Organization to free up trade in environmental goods and services. Read the Reuters report at the link below.
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