GE Gas Turbine Upgrades to Boost Efficiency, Output of Pakistani Power Plant

o KAPCO Plant Combined-Cycle Efficiency Will Deliver Additional 12 Megawatts of Power, Enough for 800,000 Homes

o Upgrades Will Generate Additional Revenue of $1.5 million Per Year for Each Gas Turbine

o Four GE Gas Turbines Have Been Operating at the Site for Nearly 22 Years

o Pakistani Government Pushing for Improved, Cost-Effective Power Plant Performance

KOT ADDU, PAKISTAN - GE (NYSE: GE) is providing engineering, equipment, spare parts and services for a gas turbine upgrade project that will significantly increase the efficiency, output and revenue of the Kot Addu Power Company Limited (KAPCO) power plant in Pakistan's Punjab province. The project supports the Pakistani government's push for reduced fuel costs and improved efficiency for power plants across the country.

Under contracts totaling more than $14 million, GE is upgrading four GE Frame 9E gas turbines that were installed at the KAPCO plant nearly 22 years ago. The upgrade of the first unit has been completed, and the upgrades for the remaining three machines are scheduled for completion by late 2011. When the total project is completed, overall plant net combined-cycle efficiency is expected to increase by 0.44 percent, while the output of each gas turbine will increase by three megawatts, for a plant total of 12 megawatts - enough additional power for 800,000 homes.

"Our goal was to improve the gas turbine heat rate to get increased plant efficiency, and GE offered the best solution to meet our requirements," said Naeem Ahmad Tariq, senior manager Maintenance of KAPCO. "The fuel savings that will be realized due to the higher efficiency and the additional output will generate additional revenue of $1.5 million per year for each gas turbine."

The increased plant output will help KAPCO respond to Pakistan's growing electricity requirements. According to government estimates, the gap between supply and demand during peak load periods is five gigawatts, and the country's annual average growth in power demand is 8 percent.

The gas turbines are being uprated with GE's most advanced sealing and hot gas path components, including aero-design stage nozzles and buckets. The new GE technology will replace old equipment, leading to improved unit performance and reliability with low cost impact. The project is being supported by a local GE partner, Albario Engineering.

"The upgrade project builds on a long-standing relationship between GE and KAPCO. We have been providing spare parts, repairs and onsite technical advisory services for the gas turbines since they started commercial operation in 1989," said Hasan Dandashly, regional general manager, Power Generation Services for GE Energy Services. "By improving plant efficiency and enhancing output, the upgrade will enable KAPCO to reduce operating costs and meet energy demands."

The GE Frame 9E gas turbines at the KAPCO plant are designed to operate on residual furnace oil, diesel and natural gas, with fuel sourced from local suppliers.

KAPCO is Pakistan's largest non-state electricity producer. It produces and sells electrical energy from its multi-fuel power station in Punjab province, which has 15 generating units with a capacity of 1,600 megawatts. The company was incorporated in 1996 and is based in Lahore, Pakistan.

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