General Electric Company (NYSE:GE) signs $2.7 billion power generation deal with Algeria.
The North African country search for to increase especially its power generation capacity, so it has signed three contracts with US based electric company, in order to meet its energy demands.
According to signed contract, the diversified technology provider has said, the main deal contain a $1.9 billion six combined-cycle power plants, this power plant will increase the energy resources by 70% of the country, which will add 8 gigawatts (GW) to the county’s generating capacity.
GE has also added in its statement, currently the energy requirements in Algeria is likely to be rising at an average yearly speed of approximately 14%, increasing to approximately 20 GW from 12 GW by 2017.
While in the other two contract the US Company will provide two fast-track projects this summer’s peak demand which will add 528 MW of capacity energy. And GE will provide, another 370 MW production capacity, which include a fresh simple-cycle power plant that will be placed in the country electricity grid to boost the energy demands.
General Electric Company has signed the main deal with Sonelgaz Group, mainly known as Societe Algerienne de Production de l’Electricite, which is a division of Algeria’s national gas and electricity firm.
The US Company has also said it has planned a combined project with Sonelgaz to construct a factory in Algeria to manufacture over 2 GW of power generation equipment annually, and this factory will also provide approximately 400 additional jobs in the country.
The Connecticut-based company will supply aeroderivative gas turbine and gas turbine combined-cycle technology for 9 power plants in Algeria, help the country to meet increasing requirement of power.
Head of GE Power & Water, Steve Bolze, has said in the statement, the company fresh deal with Sonelgaz highlight the company constant assurance to provide the best services and technology to help Algeria in meeting its rising energy needs.
Shares of General Electric Company (NYSE:GE) were rose 0.87%to $24.22 in premarket. In last session GE closed at $24.01.