GE Oil & Gas, an operating segment of General Electric Company (GE), will provide its compressor technology to Total S.A., a France-based energy company. Total S.A. has started a refinery off-gas ("ROG") expansion project at its refinery complex in Antwerp, Belgium.
The compression equipment order was conducted by the Italian engineering, procurement and construction company Kinetics Technology, a part of the Maire Tecnimont industrial group.
Of late, many refineries and petrochemical companies have been steadfastly attempting to lower their production costs and improve operating efficiency. European companies are also following the trend as they choose to upgrade and develop existing facilities rather than developing new plant sites.
Total S.A. has committed an overall investment of $1.3 billion toward modernization and expansion of its capabilities at the Antwerp refinery. For this project, General Electric designed a technical and commercial offering that will expand and significantly boost the operating efficiency of the plant.
The technology will convert low-value refinery off-gases into a low-cost petrochemical feedstock as it will recover substantial quantities of valuable hydrocarbons that would otherwise be burned as fuel. The hydrocarbons would be recovered by processing them as feed streams in the existing naphtha cracker, and would eliminate the need for expensive oil-based naphtha feeds.
The order is worth $33 million and consists of multiple compressor applications, including ethylene and propylene refrigeration. General Electric will also provide project management, parts and installation services per the deal.
The compressor equipment is scheduled to be delivered in the third quarter of 2015, in keeping with the planned startup of Total S.A.’s ROG facility in early 2017.
General Electric currently has a Zacks Rank #2 (Buy). Other companies in the diversified operations industry that are worth mentioning include Federal Signal Corp. (FSS), Carlisle Companies Incorporated (CSL) and ITT Corporation (ITT), each sporting the same rank as General Electric.
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