SPR, GE Sign 18-year Service Agreement
By Jack Burke05 April 2017
SPR Energy said it will collaborate with GE’s Power Services to provide comprehensive operations and maintenance (O&M) at the Kimanis Sabah combined-cycle power plant in Malaysia for the next 18 years.
The multiyear agreement (MYA) includes GE’s first implementation of its Asset Performance Management (APM) software solution in the Association of Southeast Asian Nations (ASEAN) region. The MYA covers all on-site equipment, including two GE 6B gas turbines, two heat recovery steam generators and a non-GE steam turbine. GE’s ability to provide access to parts and assets for both original equipment manufacturer (OEM) and other OEM technologies enables it to offer cross-fleet services for more than 90 brands of equipment.
“At SPR, we constantly seek catalysts and transformations that lead to sustainable growth outcomes and help meet growing power demands in the State of Sabah,” said Chris Sy Choon Yen, chief executive director of SPR Energy. “Strategically, it makes sense for us to enlist a single trusted and credible service provider to help upgrade, manage and modernized our existing assets, which consist of equipment from various power generation companies, at our Kimanis facility. This multiyear agreement complements our growth strategy in Malaysia and presents opportunities for us to expand our collaboration with GE in the global arena.”
SPR Energy said it conducted a comprehensive service provider selection process, in alignment with recognized industry standards and practices, to choose a service provider with the right balance of value, scope of service and demonstrated professionalism. GE’s end-to-end total plant solutions portfolio and previous work with SPR Energy contributed to the company’s decision, it said.
“We have a longstanding relationship with SPR Energy built on years of mutual respect and trust, and we are delighted to help them find alternative solutions for its day-to-day management and improve their operations at the plant,” said Paul McElhinney, president and CEO of GE’s Power Services. “We look forward to helping SPR Energy meet its long-term goals and objectives strategically and operationally with this multiyear collaboration.”
The agreement also includes the implementation of GE’s APM Suite of digital solutions designed to improve asset visibility, reliability and availability. The OEM-agnostic software enables valuable data from connected assets, regardless of make or model, to be analyzed 24/7 by GE’s Monitoring and Diagnostics Center in Kuala Lumpur. From there, data is transformed into actionable insights—such as real-time diagnostics, troubleshooting and condition forecasting—that can help improve plant reliability and reduce downtime. In addition, intervals between maintenance events can be enhanced from 12 000 to up to 32 000 hours. Data processed by the APM solution can help balance maintenance costs, improve inspection intervals and provide invaluable insights into operational risks, the company said.
The MYA between GE and SPR Energy aligns with current Malaysian energy production goals. According to Suruhanjaya Tenaga, the Malaysian Energy Commission, the total energy consumption in Malaysia is growing, but supply is dwindling. The Malaysian government plans to increase capacity by 10 GW by 2020 by building 13 new power plants and expanding three existing facilities.