Historic $3 billion Deal Sees GE and Sonelgaz Strengthen Local Digital Industrial Capabilities to Boost Algeria's Power Sector

GE Power
GE has signed a services contract with Sonelgaz in Algeria - the largest services contract in GE Power’s history. It will strengthen the power sector and lead a digital industrial transformation in Algeria. GE Power will provide operations & maintenance services for 10 power plants (11 GW in Algeria)
25 April 2017
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GE and Algeria's Sonelgaz SPE, an affiliate of Sonelgaz, will collaborate under a historic deal worth more than $3 billion that is a prime indicator of the direction now taken by many nations – upscale industrial capabilities through the local adoption of global capabilities.

The signing ceremony took place at the GE Algeria Turbines (GEAT) plant in Ain Yagout, a joint venture created in 2014 by GE and Sonelgaz, which will manufacture gas turbines and steam turbines for Sonelgaz's power generation needs.

The multi-year agreement will encompass operations and maintenance (O&M) services, technology upgrades that will enhance energy efficiency, and GE's digital solutions. That's not all, though – in a significant contribution to the local economy, GE will also help drive the local manufacturing of spare parts for gas turbines and build local capabilities to repair and provide O&M services.

"Algeria is focused on building a diversified economy and strengthening the operational efficiency of its power sector and natural gas generation and distribution assets," said Mustapha Guitouni, president and CEO of Sonelgaz. "The opening of GE Algeria Turbines (GEAT) and the digital industrial transformation of our plants are significant steps forward in achieving our economic vision of industrial diversification, boosting productivity, and maximizing asset utilization. GE will help transform our power plants, build local talent, and strengthen the culture of localization."

Under the framework of the 'Make in Algeria' initiative, the contract is expected to significantly advance the development of a local supply chain with Maintenance Des Equipements Industriels, an affiliate of Sonelgaz, to manufacture spare parts for GE's turbines in Algeria, firmly embedding it within GE's international supply chain, creating more than 300 jobs for Algerians, and in the process offering a tangible impact on the local economy.
GE will also work with ALGESCO's engineers to undertake the local repair of the 9FA technology, creating 100 jobs and building a local center of excellence for turbine repair.

The training of Sonelgaz field engineers and operators on industry best practices will allow for the potential partnering with GE in future O&M projects in Africa.

A key component of the agreement is the application of GE's Digital Solutions and Asset Performance Management – powered by Predix, the world's first and only cloud-based platform for the industry – GE will enable Sonelgaz to move to more predictive analytics, optimize their maintenance and maximise asset lifetime value.

With over 40 years of presence in Algeria, GE's advanced technologies are an ideal match to support Algeria's growth aspirations. A strategic social and economic growth partner of the nation, GE today has four offices and two facilities in the country, as well as more than 700 employees.

Click here to read more about GE's partnerships in Algeria.

This article first appeared on GE Hewar.

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