(Corrects fifth paragraph to say GE acquired Alstom assets in
2015, not last year.)
By Alwyn Scott
NEW YORK, April 24 GE Power, a division of
General Electric Co, has signed a services deal with a
subsidiary of Algerian utility Sonelgaz valued at more than $3
billion, the largest such agreement ever for GE Power, GE said
Under the 20-year contract with Sonelgaz SPE, GE will
provide long-term maintenance and operations services for 10
power plants in Algeria, which produce 11 gigawatts of power,
about 70 percent of Algeria's electricity, GE said.
The agreement is expected to save Sonelgaz $2 billion in gas
costs over 20 years, GE said.
GE will install gas technology upgrades that increase the
plants' power output by 420 megawatts and will deploy its
industrial internet software applications using its Predix
operating system, GE Power's second-largest such agreement, it
GE was able to expand the deal after its acquisition of
Alstom's power and grid businesses in 2015. "The
service agreement, and digital, will cover the total plant,
everything from the gas turbines to the rest of the equipment,"
Steve Bolze, chief executive officer of GE Power, said in an
The agreement builds on GE's growing footprint in Algeria,
where it has had a presence for four decades. GE Power, based in
Schenectady, New York, signed a $2.7 billion deal with Sonelgaz
SPE in 2013 to supply large gas turbines and related technology
to nine power plants in the country.
In 2014, GE signed a $400 million agreement to build an
industrial complex to produce gas and steam turbines under a
joint venture with Sonelgaz called General Electric Algeria
Turbines. The complex is due to come on line next year, instead
of 2017 as originally planned, Bolze said. It is due to deliver
its first turbine in 2019.
The agreement also includes specialized training for 1,000
field technicians, and positions GE for possible work with
Sonelgaz on maintenance and operations services in other parts
The company will use its existing ALGESCO joint venture with
Sonelgaz to repair turbines and set up a repair center. GE will
also use Sonelgaz affiliate MEI to make replacement parts for GE
turbines, GE said.
(Editing by Chris Reese and Jeffrey Benkoe)