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GE, CFE Sign First-of-its-Kind Services Agreement for Mexico - GE has signed a long-term services agreement with Comisión Federal de la Electricidad (CFE), the Federal Electricity Commission of Mexico, covering six GE gas turbines installed for the repowering of Manzanillo Thermoelectric
GE, CFE Sign First-of-its-Kind Services Agreement for Mexico

 

PRZOOM - /newswire/ - Mexico City, Mexico, 2011/11/07 - GE has signed a long-term services agreement with Comisión Federal de la Electricidad (CFE), the Federal Electricity Commission of Mexico, covering six GE gas turbines installed for the repowering of Manzanillo Thermoelectric. NYSE: GE

   
 
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• Contract Covers Six GE 7FA Gas Turbines at Mexico’s Largest Repowering Project;
• New Manzanillo Plant to Add 900 Megawatts of Power, Reducing Emissions;
• Reliable Electricity Supply to Help Drive Regional Development.

GE (NYSE: GE) has signed a long-term services agreement with Comisión Federal de la Electricidad (CFE), the Federal Electricity Commission of Mexico, covering six GE gas turbines installed for the repowering of Manzanillo Thermoelectric, the largest thermo power generation project undertaken by the Mexican government in the last two decades. This marks the first time an entity of the Mexican government has signed an agreement of this scope and type for power plant services.

Under the terms of the contractual services agreement (CSA), valued at approximately $200 million, GE will provide a wide range of services to support the efficient performance of the gas turbines for 15 years. Six GE Frame 7FA Gas Turbines recently were installed at the site and the first three units are scheduled to be commissioned by the end of the year. The full plant is expected to be running by the summer of 2012, adding 900 megawatts of power for the CFE grid and bringing the total site output to 1,500 megawatts.

The new GE gas turbines are replacing two conventional boilers currently operating on fuel oil at the Manzanillo site, as part of the largest repowering initiative ever launched by the Mexican government. The repowering project is expected to improve plant efficiency by 50 percent and reduce carbon dioxide emissions by 2,000 tons per year. The project potentially could create 80 new jobs related to the operating and servicing of the plant.

“This repowering project will benefit more than 10 million Mexican households by delivering access to reliable electric power,” said Antonio Vivanco Casamadrid, CEO of CFE. “Additionally, it will contribute significantly to a National Infrastructure Plan to promote the development of other industries and services in the region.”

GE CSAs cover the supply of parts, repairs and field services for maintenance outages of gas turbines and generators. These long-term agreements are structured to provide customers with predictable maintenance costs while ensuring a steady flow of revenue from power plant operations. To date, GE has long-term service agreements including CSAs in place at more than 700 sites worldwide.

GE’s 60-hertz Frame 7FA Gas Turbine is one of the most advanced in the industry and is a member of GE’s family of F-class gas turbines that have accumulated more than 36 million hours of service worldwide.

“For 115 years in Mexico, GE has not only developed advanced technology to meet local power needs, but also has offered innovative energy solutions,” said Ramón Barrientos V., account executive director for GE Energy. “This new agreement provides a platform for us to deliver long-term services and support our commitment to drive progress in the country.”

GE employs more than 10,700 people in Mexico and operates 21 manufacturing plants and eight service centers as well as 10 manufacturing centers with local partners. GE Mexico began operations in 1896 and by 1929 opened its first manufacturing plant.

About GE
GE (ge.com) is an advanced technology, services and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide.

GE also serves the energy sector by providing technology and service solutions that are based on a commitment to quality and innovation. The company continues to invest in new technology solutions and grow through strategic acquisitions to strengthen its local presence and better serve customers around the world. The businesses that comprise GE Energy—GE Power & Water, GE Energy Management and GE Oil & Gas—work together with more than 100,000 global employees and 2010 revenues of $38 billion, to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; as well as other alternative fuels and new grid modernization technologies to meet 21st century energy needs.

PRESS Contacts
Howard Masto, Masto Public Relations
P: + 1 518 786 6488 / E: howard.masto[.]ge.com.

Ken Darling, Masto Public Relations
P: +1 518 786 6488 / E: kenneth.darling[.]ge.com.

Michael Goldstein, GE Power & Water
P: +1 678 844 6653 / E: michael.goldstein[.]ge.com.

GE news, Masto Public Relations / E: information[.]mastopr.com.

 
 
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GE, CFE Sign First-of-its-Kind Services Agreement for Mexico

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