GE Distributed Power And Clarke Energy Driving Coal Seam Gas-To-LNG Expansion In Australia

GE Power & Water's Distributed Power business recently announced Clarke Energy, GE's Jenbacher gas engine authorized distributor for Australia, has been selected to supply Australia Pacific LNG with 19 new Jenbacher J620 gas engines for two on-site power projects in rural Queensland. The 3-megawatt (MW) gas engines will be used to generate a total of 57 MW of reliable electricity at two coal seam gas (CSG) processing facilities currently under construction. Australia Pacific LNG is an incorporated joint venture between Origin Energy, ConocoPhillips and Sinopec.

The first project at the Reedy Creek coal seam gas processing facility is an expansion of an existing 30 MW on-site power station installed in 2013 with 10 additional high-efficiency Jenbacher J620 gas engines, doubling the size of the plant to 20 units (60 MW). For the second project, Clarke Energy will supply the remaining nine Jenbacher J620 units for a temporary, 27-MW on-site power plant that will generate reliable electricity for the Eurombah Creek coal seam gas processing facility. Both projects will be owned, operated and maintained by Clarke Energy, with further support available from Clarke Energy's network of field service technicians and staff already located at nearby sites.

After the two new power projects are completed, Australia Pacific LNG will have an installed fleet of 29 Jenbacher gas engines capable of producing a total of about 87 MW of power to support coal seam gas processing activities.

Clarke Energy was awarded the Eurombah Creek and Reedy Creek projects under a temporary power services agreement. The rental agreement calls for Clarke Energy to design and construct a fully operational temporary power station featuring the nine Jenbacher gas engines that will generate 27 MW at Eurombah Creek and 10 units generating 30 MW at Reedy Creek. The agreement is designed to provide the facilities with a constant power supply, using locally extracted coal seam gas, until permanent electrical infrastructure can be installed.

"Our on-site power plant projects showcase an important growth segment for Distributed Power as the country continues to develop its coal seam gas and offshore natural gas reserves to become an important alternative LNG supplier for Asia and other regions of the world," said Lorraine Bolsinger, president and CEO of GE's Distributed Power business. "Clarke Energy is playing a central role in driving GE's strategic growth in this region by rapidly developing new business opportunities while offering excellent life cycle services for our customers."

Bolsinger noted that in addition to gas engines, GE also is seeing a strong demand for other power, water filtration and oil and gas production technologies and services in Australia as the country further develops its land-based and offshore energy infrastructure.

"Clarke Energy is delighted to be working on the Reedy Creek and Eurombah Creek on-site power plant projects. With the deployment of this additional 57 MW of gas engine-generated electricity, we are supporting the development of coal seam gas processing facilities in Queensland," Clarke Energy Managing Director Greg Columbus said.

Both new power facilities will use Clarke Energy's modular power station concept in which each gas engine generation set is housed in an individual enclosure. This concept, which has been proven to be successful at 12 other sites in Australia since 2006, incorporates many features to facilitate safer operation and maintenance. It also demonstrates a reliable performance under Australian outback conditions, including incorporation of Australian Standards, local legislation requirements and oil and gas industry best practices.

Clarke Energy has extensive experience in the engineering, installation and maintenance of gas generation facilities operating on coal seam gas and other gases derived from new and developing coal mines, including existing waste coal mine gas. Currently more than 120 Jenbacher gas engines have been installed to operate on coal seam and coal mine gas to generate a combined 280 MW of on-site power.

GE Power & Water's Distributed Power is a leading provider of power equipment, engines and services, focused on power generation at or near the point of use. Distributed Power's product portfolio includes GE's aeroderivative gas turbines and Jenbacher and Waukesha gas engines, which generate 100 kilowatts to 100 MW of power for numerous industries globally. Headquartered in Cincinnati, Ohio, Distributed Power employs about 5,000 people around the world.