GE Power division nears $3 bln services deal in Algeria -source - Zawya Projects

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GE Power division nears $3 bln services deal in Algeria -source

GE Power division nears $3bn services deal in Algeria Photo Credit:Reuters/Vincent Kessler
GE Power is close to signing a services deal with a subsidiary of Algerian utility Sonelgaz SpA
NEW YORK, April 24 (Reuters) - GE Power, a division of General Electric Co, is close to signing a services deal with a subsidiary of Algerian utility Sonelgaz SpA valued at more than $3 billion, likely the largest such agreement ever for GE, according to a person familiar with the matter.

Under the agreement with Sonelgaz SPE, which could be announced as early as Monday, GE would provide long-term maintenance services for 10 Sonelgaz power plants in Algeria, install 68 gas technology upgrades and deploy industrial internet software applications using GE's Predix operating system.

GE signed a $2.7 billion deal with Sonelgaz SPE in 2013 to supply large gas turbines and related technology to nine power plants in the country. In 2014, GE signed a $400 million agreement to build an industrial complex to produce gas and steam turbines under a joint venture with Sonelgaz called General Electric Algeria Turbines.

(Reporting by Alwyn Scott; Editing by Chris Reese) ((jonathan.spicer@thomsonreuters.com; +1 646 223 6253; Reuters Messaging: jonathan.spicer.thomsonreuters.com@reuters.net ))