GE supplies gas engines to Texas natural gas processing plant

Source:GE

GE supplies gas engines to Texas natural gas processing plant GE (NYSE: GE) today announced it is supplying three of its ecomagination qualified Waukesha 16-V 275GL+ gas engines to Howard Midstream Energy Partners, LLC (Howard Energy) to drive compression equipment at its new Reveille cryogenic natural gas processing plant in Webb County, north of Laredo, Texas.

The new cryogenic facility will be capable of processing up to 200 million cubic feet of gas per day (MMcf/d) and serve primarily producer and midstream business customers operating in the Eagle Ford, Olmos and Escondido gas fields in South Texas.

Cryogenic processing plants separate different constituents in natural gas, allowing producers to maximize returns by selling individual liquid compounds (NGLs). The facility helps address a shortage of cryogenic processing capacity needed to keep pace with the abundance of rich natural gas produced in the Eagle Ford shale and other traditional gas regions that cover much of South Texas.

Construction of the Reveille gas plant began in April 2013, with startup of the facility scheduled for January 2014. The plant and associated pipelines will tie into the Cuervo Creek gathering pipeline that Howard Energy bought in March 2012. The plant will handle multiple rich natural gas formations including the Eagle Ford, Olmos and Escondido plays, helping Howard Energy boost its capacity to gather, process and deliver natural gas to customers in the United States and Mexico.

“We selected GE’s innovative Waukesha technology as an alternative to what we have used in the past. This technology meets all the requirements of the Reveille Plant, which are the right combination of power, fuel flexibility and reduced emissions,” said Howard Energy Chairman and CEO Mike Howard.

GE expects to ship the Waukesha gas engines from its Waukesha, Wis., gas engines factory in July and August 2013.

“Howard Energy needed a compressor driver solution that offers more power, efficiency and lower emissions. The 275GL+ gas engines can operate on various fuel qualities without the loss of power to maintain optimal production levels at the new Reveille cryogenic plant,” said Brian White, president, Waukesha gas engines—GE Power & Water. “We are pleased to demonstrate the multiple benefits that our 275GL+ gas engine technology offers for high horsepower cryogenic processing plant applications to help meet the growing demand for shale gas processing capacity.”

In collaboration with Waukesha Pearce Industries, Inc. (WPI), an authorized distributor of GE’s Waukesha gas engines, GE will provide a comprehensive life-cycle service and parts package for the 275GL+ units. WPI has nearly a century of experience in the natural gas industry and a strong presence in the Eagle Ford shale play. AG Equipment Co., a leader in the global compressor packaging industry, is the Waukesha engine packager.

GE’s Waukesha gas engines are a key part of GE’s distributed power portfolio. GE’s distributed power solutions give customers of all types—including industrial businesses, developing communities, government agencies managing disaster relief and other emergency power situations—the ability to generate reliable, sustainable power when and where it is needed. GE’s distributed power portfolio also includes GE’s aeroderivative gas turbines, Jenbacher gas engines and Clean Cycle waste heat recovery solutions.

Ecomagination is GE’s commitment to provide innovative solutions that maximize resources, drive efficiencies and make the world work better.

The Howard Energy project is the latest example of how GE’s gas engine technology is being used to support the oil and gas industry’s increased deployment of more efficient, cleaner on-site power and water solutions that promote the development of North America’s shale and other unconventional resources.

Unconventional gas is quickly becoming the most abundant source of natural gas in the U.S. and now accounts for about a quarter of U.S. natural gas production. By 2035, half of U.S. natural gas will come from unconventional sources, according to the U.S. Energy Information Administration. The boom in unconventional gas, up from just 2 percent of the total in 2000, has cut gas prices to record levels, reduced energy imports and set the country on a path to energy independence. It also is a major force driving the job market.

The gas engines are a key part of GE’s unconventional resources portfolio that is addressing fundamental industry challenges by helping customers improve their operational performance and reduce their environmental footprints. GE’s unconventional resources solutions, consisting of more than 40 technologies from across the GE portfolio, are addressing fundamental industry challenges, helping customers to improve operational performance, reduce their environmental footprint, increase resource recovery and drive demand for natural gas.

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