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Algerian contract is GE Power’s largest ever services deal

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GE (NYSE: GE) will collaborate with Sonelgaz SPE, a subsidiary of Algeria state-owned Sonelgaz, in a landmark deal that highlights its Fleet360 total plant solutions capabilities.

The largest services deal in GE Power’s history, the agreement is designed to lead the digital industrial transformation of Sonelgaz’s plants throughout Algeria.
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The landmark deal includes long-term operations and maintenance (O&M) services for 10 Sonelgaz plants throughout the country that generate 11 GW of power, technology upgrades that will enhance energy efficiency to deliver more than 420 MW of additional power, and the introduction of GE’s digital solutions. Together, these capabilities will strengthen the operational efficiency and productivity of the plants. They will also help save up to $2 billion in gas that can be made available for sale in international markets.

The Ain Yagout site in Batna, covering an area of 20 hectares, was chosen by both partners to house this industrial complex, which will annually be able to manufacture equipment with the capacity to generate up to 1.5 GW of power. Activities began at GEAT a few months ago after Sonelgaz placed the first order of four gas turbines and two steam turbines. The equipment will be delivered between 2019 and 2020 and will be connected to the national grid by 2021.

The agreement also includes the second largest Industrial Internet software deal to date for GE Power. Sonelgaz has selected GE’s Asset Performance Management and Operations Optimization software applications to monitor and analyze data drawn from thousands of sensors throughout its power plants. The software leverages advanced data analytics to predict and eliminate unplanned downtime, and improve power plant productivity. GE’s software is built on Predix, a data platform purpose-designed for the scale and complexity of industrial data.

The new agreement will also drive the development of a local supply chain with MEI, an affiliate of Sonelgaz, to manufacture spare parts for GE’s turbines in Algeria. GE will qualify MEI to manufacture spare parts as early as 2017, and it will become a part of its international supply chain.

This agreement builds on GE’s long term presence in Algeria. In 2013, GE signed three major contracts to supply heavy-duty gas turbine and aeroderivative gas turbine technology for nine power plants throughout the country.

“The Algerian government and Sonelgaz have a clear vision for the future of the country’s power sector,” Steve Bolze, president and CEO of GE Power said. “The emphasis on building industrial capacity and the focus on the digital transformation of power plant assets are long-term investments in the future of the country. GE is honored to strengthen our collaboration with Sonelgaz and help create a vibrant local ecosystem for the power sector that will help meet the needs of people and various industries across Algeria

The agreement was signed by president and CEO of Sonelgaz SPE, Sabri Lezhari; and president and CEO of GE Northwest Africa, Touffik Fredj, in the presence of the Prime Minister of Algeria, HE Abdelmalek Sellal; the Minister of Energy, HE Noureddine Boutarfa; the CEO of Sonelgaz, M. Mustapha Guitouni; president and CEO of GE Power, Steve Bolze; president and CEO of GE Middle East, North Africa and Turkey, Nabil Habayeb; president and CEO of GE’s Power Services business in the Middle East and Africa (MEA), Joseph Anis; General Manager Sales of GE’s Power Services business in MEA, Adel Omrani and other high-level GE and government representatives.

The signing ceremony took place at the GE Algeria Turbines (GEAT) plant in Ain Yagout, a joint venture created in 2014 by GE and Sonelgaz, which will manufacture gas turbines and steam turbines for Sonelgaz’s power generation needs.