BOSTON, March 3 - General Electric Co (GE.N) said Chevron Corp (CVX.N) chose it to supply power-generation and undersea equipment to a huge natural gas development planned off the coast of Australia, pushing the U.S. conglomerate's forecast equipment revenue from the project to $1.1 billion.
GE will supply the wellheads and pipes that the Gorgon project will use to extract natural gas from wells drilled more than 4,000 feet (1,200 metres) below the surface of the Indian Ocean off the northwest coast of Australia.
The world's largest maker of electricity-producing equipment will also supply gas turbines to generate power.
"These further contract wins strengthen our partnership role in the project," said Claudi Santiago, chief executive of GE Oil & Gas.
In October, Chevron tapped GE to supply compressors to cool the gas into a liquid form -- which makes it easier to transport by boat -- and to pump carbon dioxide removed prior to liquefaction back into the wells from which the gas is released.
The latest round of equipment orders more than doubles the $400 million in revenue GE had expected from the compressor sales.
Chevron and partners Exxon Mobil Corp (XOM.N) and Royal Dutch Shell (RDSa.L) estimate it will cost about $39 billion to build out the Gorgon gas wells.
Fairfield, Connecticut-based GE expects to start shipping equipment for the project in 2011.
GE expanded into undersea oil and gas equipment in 2007 when it bought Vetco Gray in a $1.9 billion cash deal.
GE will supply the wellheads and pipes that the Gorgon project will use to extract natural gas from wells drilled more than 4,000 feet (1,200 metres) below the surface of the Indian Ocean off the northwest coast of Australia.
The world's largest maker of electricity-producing equipment will also supply gas turbines to generate power.
"These further contract wins strengthen our partnership role in the project," said Claudi Santiago, chief executive of GE Oil & Gas.
In October, Chevron tapped GE to supply compressors to cool the gas into a liquid form -- which makes it easier to transport by boat -- and to pump carbon dioxide removed prior to liquefaction back into the wells from which the gas is released.
The latest round of equipment orders more than doubles the $400 million in revenue GE had expected from the compressor sales.
Chevron and partners Exxon Mobil Corp (XOM.N) and Royal Dutch Shell (RDSa.L) estimate it will cost about $39 billion to build out the Gorgon gas wells.
Fairfield, Connecticut-based GE expects to start shipping equipment for the project in 2011.
GE expanded into undersea oil and gas equipment in 2007 when it bought Vetco Gray in a $1.9 billion cash deal.
