GE Energy, Atlantic LNG Sign $400 Million Contractual Service Agreement.

FLORENCE, Italy -- GE Energy has signed a US$400 million, 17-year contractual service agreement (CSA) covering 27 gas turbines and 47 centrifugal compressors at Atlantic LNG Company's production facility in Port Fortin, Trinidad.

This contract includes a new maintenance approach based on an evolution of the modular exchange normally applied on GE aeroderivative engines and now extended to GE heavy-duty 32-megawatt gas turbines.

Using this approach during scheduled outages, Atlantic LNG's existing gas turbines will be removed and replaced in modules, substantially reducing the turnaround times.

GE will build and operate a dedicated service shop in Point Fortin, where the removed modules will be overhauled in a state-of-the-art facility, maximizing local skills.

"Our patented modular replacement method is designed to reduce outage duration and significantly increase plant availability," said Claudi Santiago, president and CEO of GE Energy's oil and gas business. "Over the life of the CSA the new approach, coupled with the CSA structure, is expected to add a year of production for the Atlantic LNG plant.

"The CSA award marks a new and very significant milestone in our relationship with Atlantic LNG, which started more than 10 years ago," Santiago added.

"A key strategy for Atlantic LNG is to meet the growing demand for LNG (liquefied natural gas) by obtaining more production from our existing assets," said Richard Cape, president of Atlantic LNG. "The advanced maintenance methodology developed by Atlantic LNG and GE and the CSA contract are key elements of this strategy."

The gas turbines covered under the CSA are GE Frame 5002D machines, while the compressors are state-of-the-art horizontally split and barrel type centrifugal units used in the LNG refrigeration process.

In addition to the modular replacement program for the gas turbines and compressors, GE also will supply spare parts, and scheduled and unscheduled services for the duration of the CSA.

Along with achieving an extra year of production by reducing outage durations and extending maintenance intervals, GE's contractual services team will work to enhance the plant availability while ensuring the highest safety standards. The team will utilize knowledge developed through GE's extensive experience with LNG plants.

The service includes full technical support from the Florence, Italy headquarters of GE Energy's oil and gas business, through a state-of-the art remote monitoring and diagnostics system.

Atlantic LNG is owned by Trinidad and Tobago National Gas Company, BP, British Gas, Repsol and Tractebel. Three turbo compression trains are currently in production at the Port Fortin facility, with a fourth under construction. The total capacity of the plant places Trinidad and Tobago among the top five producers of LNG in the world.

About GE Energy

GE Energy (www.gepower.com) is one of the world's leading suppliers of power generation and energy delivery technology, with 2004 revenue of $17.3 billion. Based in Atlanta, Georgia, GE Energy provides equipment, service and management solutions across the power generation, oil and gas, transmission and distribution, distributed power and energy rental industries.