GE’s Power Services inks US$ 330 million deal to improve power plant in Juarez
GE’s Power Services business signed a series of long-term agreements with a consortium formed by Macquarie Capital and Techint valued at approximately over US$ 330 million to provide 25 years of total plant services solutions for a 907 megawatts (MW) Norte III power plant, located in the municipality of Ciudad Juarez, in the state of Chihuahua, Mexico.
The agreements include two fully integrated contracts, including an Operation and Maintenance (O&M) agreement and a Contractual Service Agreement (CSA). Overall this transaction has been recognized with the prestigious “2017 LatAm Power Deal of the Year” award by Thomson Reuters’ Project Finance International.
At the start of 2015, Mexico’s Federal Electricity Commission (CFE) commissioned the development of a combined-cycle power plant just south of Ciudad Juarez to help meet the growing need for electricity in the region.
The Chihuahua region is identified as a “deficient node” in the PRODESEN 2017-2030 plan, given its expected growth in the next decade. The PRODESEN 2017-2030 is a 15-year infrastructure development program for Mexico’s national electric system.
During its peak construction period, Norte III will employ approximately 2,000 workers and is expected to provide electricity to more than 500,000 houses in Mexico once completed.
During commercial operation Norte III will provide for highly specialized on-going jobs including power plant staffing and additional maintenance staff during outages for 25 years.
Under the terms of the 25-year agreement, GE will utilize its Fleet360 platform of total plant solutions for the Norte III plant which operates on four of GE’s 7F.04 gas turbines as well as two Toshiba steam turbines.
The platform also provides a full spectrum of digital solutions and plant improvement services, regardless of which original equipment manufacturers (OEM) generation equipment they have installed.
As part of the solution, GE’s Predix-based Asset Performance Management (APM) and Operations Optimization (OO) software applications will be deployed to apply advanced data analytics to predict and eliminate unplanned downtime, and improve power plant productivity.
GE began its operations in Mexico in 1896. Mexico has the third largest 7F and 7H install base in the world. GE’s 16,000-square-meter Morelia Service Center, located in Morelia, Michoacán, Mexico, provides maintenance, testing and repair solutions for the Latin American region and will help ensure Macquarie gets the best and quickest possible repairs.