SWEDEN Gas Turbines: Maintenance accord follows low emission turbine launch

Sweden-based Volvo Aero Land & Marine Gas Turbines (LMGT) has recently landed two important contracts for on and offshore gas turbines.

Th 6103osvolv
Th 6103osvolv
Volvo Aero has secured a long-term maintenance contract for Dresser-Rand's DR900 gas turbine range.
Click here to enlarge image

Sweden-based Volvo Aero Land & Marine Gas Turbines (LMGT) has recently landed two important contracts for on and offshore gas turbines. The first, with US-based Dresser-Rand, is worth up to SEK 75 million annually and involves all aftermarket responsibility for Dresser-Rand's DR990 gas turbines. The deal involves around 100 DR990 stationary gas turbines, the majority of which are used to drive pumps and compressors for the off and onshore oil and gas industry.

While LMGT acquired the technology rights to the DR990 to supplement its own portfolio of industrial gas turbines three years ago, this will be the first time the company has taken on the entire maintenance business for that make of turbine. The contract will cover planned maintenance, worldwide field service, sales of spare parts and lease engines.

Low emissions

According to LMGT, this acquisition contract is strategically important since it will also support the launch of two of its own environmentally compatible industrial gas turbines - the 4.4 MW VT4400 due to be introduced this year and the 4.8 MW VT4800 in 2002, both of which are based on the DR 900 design. The new turbines will also feature low-emission combustion chambers which can be retrofitted to existing DR990 turbines.

LMGT believes that it will be able to offer better a price/performance ratio with the new products as a result of redesigning the turbine and its ability to source a whole range of components through European suppliers.

Phillips maintenance contract

LMGT has also secured a joint maintenance contract with German company MTU Maint-enance for 21 industrial gas turbines owned by Phillips Petroleum in Norway and the UK. Based on an existing long-standing co-operation between the two companies for commercial aircraft engine components, the new five-plus-three-year agreement, is the first time the two companies have worked together for this type of maintenance contract.

LMGT will be responsible for six General Electric LM1600 gas turbines, while MTU takes responsibility for 15 LM2500 units. The Phillips LM1600 turbines will be in addition to existing service and maintenance contracts the company has for 14 other offshore units and land-based units.

"We currently offer Level 1-3 maintenance contracts for our customers, when Level 3 includes an availability guarantee of 95%," says Appelfeldt. Several LMGT LM1600 customers have 'Level 3' contracts and the company believes that this option may also be made available to customers using the DR990 turbines. One option is to fit a leasing engine as a temporary solution or to replace an engine that is due for service with one that has already been overhauled.

For more information contact TordJohnsson for new Gas Turbines sales: tel +46 520 948 06, fax +46 520 477 549, E-mail: tord.johnsson@volvo.com, or www.volvo.com/lmgt.

More in Company News