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General Electric Company (GE - Analyst Report) recently procured a $600 million contract to supply turbomachinery equipment for the Yamal liquefied natural gas (LNG) project located on the Yamal Peninsula in Russia’s northern Siberia region. The joint venture project is owned by Russia’s largest independent gas producer OAO Novatek (80%) and France’s Total SA (TOT - Analyst Report) (20%).

With a production capacity of 16.5 million tons per year, the project entails construction of a gas liquefaction facility to meet the increasing energy needs of Asia and Asia Pacific Region.

General Electric is supplying all the critical turbomachinery equipment required for three production lines, each of which will have a capacity to produce about 5.5 million tons of LNG a year. Each production line includes two main refrigeration units that liquefy natural gas for easy transportation.

As part of the agreement, General Electric will supply six Frame 7E gas turbines, 18 centrifugal compressors, six variable speed drives and six WHRUs (waste heat recovery units). While the turbines will be produced at GE Power & Water’s manufacturing plant in Greenville, S.C., the compressors will be manufactured at GE Oil & Gas’ facility in Florence, Italy. GE Power Conversion facilities in France will provide the variable speed drives for the project.

The contract also entails General Electric to cover installation supervision and support services at commissioning stage. The equipment are likely to be delivered in the second half of 2015, and the first natural gas liquefaction production line is slated to reach its full capacity in 2017.

General Electric is one of the largest and most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products, the company serves over 100 million customers worldwide.

General Electric currently has a Zacks Rank #3 (Hold). Other companies in the industry that are worth mentioning include LSB Industries Inc. (LXU - Snapshot Report) and ITT Corporation (ITT - Analyst Report), both having a Zacks Rank #2 (Buy).

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