GE Lands New Major Gas Project (NYSE:GE)

General Electric Company (NYSE:GE) is really having a good week with favorable news of company’s growth from all around. GE has received a US$400 million project to supply equipment to the world’s biggest new liquefied natural gas development that is being made by Chevron Corporation in Australia. The news had an immediate effect on the share prices of GE as they went up for some time temporarily. GE has said that they are really happy that they have got the deal to provide equipments to one of the leading companies in the world.

Additionally, GE announced that Chevron Corporation has tapped them to provide compressors that will compress the gas and sequester carbon dioxide that is released during the production. Chevron Corporation along with Exxon Mobil Group and Royal Dutch Shell are working together on this project and expects that the project cost to make the equipments will surpass US$37 billion. The gas project they are working on is named Gorgon and is expected to produce around eight percent of the world’s liquefied natural gas making Australia the second largest exporter of gas in the world after Qatar.

GE has mentioned that they will provide Chevron Corporation with their latest LNG technology and their competitive edge in pioneering carbon dioxide sequestration applications. The compressors that will be provided by GE will have dual purposes. Initially it will cool the gas into liquid form and secondly it will pump out the removed carbon dioxide before liquefying the gas back into the wells. Gorgon will than become the world’s first LNG facility to pump carbon dioxide released in the production process back into the ground rather than releasing it into the air and causing more problems like environmental pollution and health hazards.