KUALA LUMPUR, MALAYSIA - December 10, 2007 : - GE Energy today signed a contract with Siam Power Generation Public Co., Ltd. (SIPCO) of Thailand to provide total services for the day-to-day operation of SIPCO'S new power plant. GE Energy also supplied a Frame 9E gas turbine for the 150-megawatt combined-cycle power plant located in Rayong, which will provide electricity for the national utility and a major steel producer when it enters service in 2010.
Under the US$100 million operations and maintenance (O&M) contract, GE will operate and maintain the new SIPCO power plant for 25 years. This is GE's first O&M contract with a small power producer (SPP) in Thailand.
"Our O&M contracts are designed to promote reliable, safe and economic plant operation, providing customers with direct access to GE technical expertise and O&M experience," said James Kaveney, general manager of global O&M for GE Energy's contractual services business. "Currently, our O&M agreements are in place at 64 power plants worldwide."
"Leveraging the latest technologies and plant management systems, as exemplified by this contract with SIPCO, the energy market and industries benefit as a whole when greater efficiencies are translated into fuel and cost savings," said Kovit Kantapasara, GE Energy country executive, Thailand.
"GE's service agreements are designed to provide a more stable cash flow for plant operations and management, while shifting associated risks from the customer to the services provider. Customers also benefit from upgrades to the latest technologies supplied by GE," said Kantapasara.
To execute the O&M services for the SIPCO plant, GE expects to employ about 20 technicians from the local community.
The Frame 9E gas turbine supplied by GE is well proven in Thailand, with 18 of these machines installed for projects in the country. Designed for high levels of reliability, availability and maintainability as well as fuel flexibility, nearly 400 of these 110-megawatt class gas turbines have been installed or committed for projects worldwide.
SIPCO's plant will sell electrical output to the Electricity Generation Authority of Thailand (EGAT) and G Steel Ltd., the second largest steel mill in Thailand, under 25-year power purchase agreements.
SIPCO is 70% owned by Mperial Power Ltd., a subsidiary of Melewar Industrial Group Berhad (MIG), a publicly listed company in Malaysia.
About GE Energy
GE Energy (www.ge.com/energy) is one of the world's leading suppliers of power generation and energy delivery technologies, with 2006 revenue of $19 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels. Numerous GE Energy products are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.
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