GE signs gas turbine services agreement in Mexico

GE (NYSE: GE) said it 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.

Under the terms of the contractual services agreement (CSA), valued at approximately $200 million, GE will provide a range of services to support the performance of the gas turbines for 15 years. GE CSAs cover the supply of parts, repairs and field services for maintenance outages of gas turbines and generators.  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 new GE gas turbines are replacing two boilers currently operating on fuel oil at the Manzanillo site. GE said the repowering project is expected to improve plant efficiency by 50 percent and reduce carbon dioxide emissions by 2,000 tons per year.

The full plant is expected to be running by the summer of 2012, adding 900 MW of power for the CFE grid and bringing the total site output to 1,500 MW.

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