Alstom, which has signed binding agreements to sell its small and medium gas turbine and industrial steam turbine businesses in two transactions to Siemens AG, was recently awarded contracts to supply gas turbines for projects in Qatar and Egypt.

The global specialist in energy and transport infrastructure will supply a 30MW GT10C gas turbine in mechanical drive for installation on a fixed platform in the Al Shargi field, offshore Qatar.

The turbine will run on natural gas and be delivered in the spring of 2004. The EPC contractor is SMOE Pte Ltd and the end customer is Occidental Petroleum Qatar Ltd.

Occidental took over the Idd Al Shargi North Dome (ISND) oilfield operation in 1994, and in 1997 signed a production sharing agreement for the Idd Al Shargi South Dome (ISSD) oilfield. The two complexes are connected by a 22 km sub-sea pipeline.

The GT10C will fit into phase 2 of the ISND development.

Based on proven technology, its overall design being based on the established 25 MW GT10B, with some features incorporated from the 43 MW GTX100, the GT10C is designed for maximal reliability and minimal operation costs. Its compact package design allows for rapid delivery and installation, even offshore.

For the Egyptian project, Alstom was awarded two separate orders for a total of four GT35C power generation sets. Bechtel International Inc had placed the orders. The units will be incorporated into a new LNG facility at Idku, approximately 50km east of Alexandria in Egypt.

Bechtel will construct multiple 3.6-million-tonnes-per-year liquefied natural gas trains for Egyptian LNG, whose owners include British Gas, Gaz de France, Edison International, Egyptian General Petroleum Corporation and the Egyptian Natural Gas Holding Company. The GT35C gas turbines will be delivered in 2004 and the first production of LNG is expected in the third quarter of 2005.

The four GT35C power generation gas turbines will be assembled at the industrial gas turbine manufacturing facility in Finspong, Sweden. The GT35C, with an ISO rating of 17MW in power generation (and 23500 BHP in mechanical drive applications) has been in production at this rating since the early 1980's, and some 160 units have entered service. This most proven and reliable industrial gas turbine has been used in similar applications worldwide and is provided with package features that minimise the site installation period.

The Egyptian LNG project team of Bechtel International Inc have presented Alstom with a Supplier Excellence Award and a letter of recognition for their contributions to team effectiveness and innovation.

Affected by the Alstom sale will be the small gas turbines business (3MW-15MW) based principally in the UK; the medium-sized gas turbines business (15MW-50MW), based principally in Sweden, and the industrial steam turbines business (up to about 100MW) with manufacturing sites in Sweden, Germany and the Czech Republic, and global customer service operations.

The transactions are subject to regulatory clearances and documentation submitted to relevant merger control authorities.

The total enterprise value of the two transactions is Euro 1.1 billion. Net cash proceeds to Alstom are expected to be approximately Euro 950 million after deduction of debt transferred and certain other adjustments for cash items.

The first transaction will cover the small gas turbines business and the second will cover the medium-sized gas turbines and industrial steam turbines businesses.

Commenting on the sale, Patrick Kron, chairman and CEO of Alstom, said: "These transactions constitute a key milestone in our action plan to strengthen our financial base."