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September 10, 2014

Freeport LNG Selects GE for Major North America LNG Export Project

NEW YORK, Sep 10, 2014 —

  • Freeport LNG, Texas Will Be First World-Scale Electric Liquefied Natural Gas (eLNG) Plant in North America, Delivering Base Volume of 4.4 Million Metric Tonnes Per Annum of LNG Per Train
  • GE to Provide Freeport's Main Contractor, CZJV, with the Main Refrigeration Compressor Trains, Driven by GE's Variable-Speed Drive Electric Motors
  • GE is Providing Technology and Financing
  • GE Was Chosen Based on its Strong Electrical and Mechanical Experience in Delivering, Powering, Testing and Financing Complex, Large LNG Facilities

GE Oil & Gas (NYSE: GE) announced today that it is providing both technology and capital to help expedite construction of the Freeport LNG gas liquefaction and liquefied natural gas (LNG) export project in Southeast Texas. GE is supplying the main refrigeration compressors, variable-speed drive electric motors and other electrical equipment for two customized LNG liquefaction trains, each of which will produce a base volume of 4.4 metric tonnes per annum (mtpa) of LNG. In addition, GE is providing financing to support the project through pre-construction engineering and design.

In a transformation of its energy fortunes, the shale gas boom gives the United States the potential to become one of the globe's largest LNG exporters. Freeport LNG will play a vital role in maximizing the value of this abundant and affordable shale gas, becoming the first world–scale electric liquefied natural gas (eLNG) plant in North America. Using GE'ss electric motor driven technology has enabled Freeport LNG to comply with strict local emissions standards and support its ambitious LNG production and export targets.

"GE's strong partnership and expertise have helped us address this project's unique challenges, quickly," said Michael Smith, CEO of Freeport LNG. "Through its innovative technology, financial expertise and ability to address environmental challenges in a cost–effective manner, GE is helping us to create the lowest air emissions and carbon footprint in the U.S. LNG industry."

GE will supply two liquefaction trains with an integrated solution consisting of:

  • Six centrifugal compressors.
  • Six 75-megawatt (MW) synchronous electric motors including the largest electric motor ever supplied for an LNG facility.
  • Six variable speed drives (LCI technology).
  • Electrical equipment such as gas insulated switchgear, MCC, harmonic filters, e–houses and auxiliary electrical equipment.
  • Integrated LNG plant and power grid modelling coordinated protection and control development, power quality evaluation and power system design verification studies.

The Freeport eLNG project is unique in electric power systems design and implementation. The plant will feature all–electric drive compression directly connected at the utility incoming transmission voltage level. The power systems engineering study and design for Freeport uses the deep power systems expertise of GE's Energy Consulting team.

GE has invested heavily in its capabilities for high–powered and more complex mechanical–electrical systems, now delivered in the eLNG sector. GE can provide the option for LNG projects to use existing electric power or to build their own combined–cycle power plants that can power electric motor–driven refrigeration systems.

With its extensive investing experience in LNG and midstream, GE Energy Financial Services was able to bring the expertise required to provide a unique financing solution for Freeport LNG. GE Energy Financial Services underwrote a loan and subsequently secured three additional lenders, allowing the project to expedite equipment orders and permit approval.

"Our strong LNG expertise, manufacturing capabilities and our ability to perform full load string tests, as well as our exacting safety standards, set us apart with this major project," said Rafael Santana, CEO and President, Turbomachinery Solutions, GE Oil & Gas. "Freeport was also impressed by our ability to adapt and upgrade our technologies to meet their requirements. We always partner with our customers to manage complexity, bringing to the oil and gas business GE's experience from other industries and helping customers to overcome oil and gas industry challenges."

GE will build and package the refrigeration trains in Florence, Italy and tests will be conducted in Massa, Italy. They are due to be delivered in Texas in 2016 and be fully operational by 2017.

CZJV–a joint venture between CB&I Inc. (NYSE: CBI) and Zachry Industrial, Inc.–serves as the engineering, procurement and construction contractor for the construction of Train 1 and Train 2 of Freeport LNG's liquefaction project.

For additional information, visit the GE Oil & Gas Investor Meeting page on ge.com.

Note to Editors:

GE has a proven track record in providing mission–critical equipment for the LNG sector. Through continuous and reliable innovation, GE enables its customers to meet industry challenges, from the largest LNG train compressors to small LNG plants for remote locations.

GE also is actively involved in a number of major eLNG projects across the U.S., providing the industry with an integrated eLNG system that includes leading electric high–power motors, variable speed drive systems and compressors.

GE has the largest and most complete testing capability in the industry and is able to perform tests under actual load and pressure conditions–including LNG and re–injection. GE's facilities in Florence, Massa (Italy) have a wide range of indoor and outdoor test beds for a variety of standardized tests, as well as the capability to perform full–load string testing, ensuring the systems can withstand the pressures of live use. The Massa facility is equipped with sophisticated systems for data acquisition and processing of test results. Tests can be performed on centrifugal, axial and reciprocating compressors, steam and gas turbines, electric motors and any combination of modules as required by customers.

About GE

GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.

About GE Oil & Gas

GE Oil & Gas works on the things that matter in the oil and gas industry. In collaboration with our customers, we push the boundaries of technology to bring energy to the world. From extraction to transportation to end use, we address today's toughest challenges in order to fuel the future. Follow GE Oil & Gas on Twitter @GE_OilandGas.

About Freeport LNG

Freeport LNG Expansion, L.P. is a wholly owned subsidiary of Freeport LNG Development, L.P., which owns and operates an existing LNG regasification terminal located near Freeport, Texas. The terminal started commercial operation in June 2008.

For more information, contact:

Rebecca Lowell Edwards
GE Oil & Gas
+44 7825 283871 (UK)
+1 914 433 1124 (US)
rebecca.edwards1@ge.com

Barbara Del Sala
GE Oil & Gas
+39 055 4586980
+39 342 5635184
barbara.delsala@ge.com

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