Growth in the Middle East

Steve BolzePresident – Power Generation

GEEnergy

Abdullah TaibahRegion Executive, ME

Energy overview

3Source: GE Energy PG Marketing

Total capacity additions – GW (2006 – 2015)

N. America China

RO Asia

India

W. Europe

Middle East / Africa

Latin America

E. Europe & FSU

NuclearRenewablesHydroCoal Gas/Oil

TOTAL

821243559

146

10 year avg annualcap adds (GW)

Middle East/Africa … 140 GW addition to 2015

• 230GW installed

• 3% reserve margin

• 60% increase estimated by 2015

4

20%AAGR

GE Energy in the Middle East

21% AAGR

’07-’10F

Orders($billions US)

’03 ’06

1.3

1.7

Regional Initiatives

• Infrastructure development driving

power and co-generation needs

• Industrial development at

accelerated pace ... the world hub for

LNG, aluminum, petrochemical, GTL

and refining

• Clustered Infrastructure approach …

King Abdullah Economic City, KPIZ

Abu Dhabi

5

Technology excellence across the portfolio

Gas

Network Reliability

EnvironmentalServices

Cleaner Coal Nuclear Wind Hydro

Asset Optimization

Biomass Solar

6

Recent Middle East Gas Turbine Activity

12+ GW / Year ……. Well Positioned

Lebanon

Samra (1 x 9E)Iraq

Bahrain

Kuwait

• RAF (3 x 9FA)

• QatarGas (12 x 9E’s)

U.A.E.

Yemen

Oman

Saudi Arabia

Syria

• PP9 (20 x 7EA)

• Jizan (7EA)

• Tihama (6 x 7FA)

•Hamriyyah

(4 x 9E)

•Zawra (6x9E’s)

Saih Rawl (1 x 9E)

Jordan

Qatar

• Arbil (4x9E’s)

• Qudus (2x9E’s)

$3B+

• Qurayyah (15 x 7FA)• Marafiq (12 x 7FA)• Messaeid (6 x 9FA)• PP8 ext. (4 x 7FA)• PP9 (12x7EA)• Rabigh (16x7E’s)

Opportunities:

7

Technology excellence across the portfolio

Gas

Network Reliability

EnvironmentalServices

Wind Hydro

Asset Optimization

Biomass Solar

Cleaner Coal Nuclear

Portfolio Presence

• Contractual Services

• Environmental

• Optimization & Control

• Gas Engines

• Crude Gasification Opportunity

8

Technology

Customer Solutions

FulfillmentLocalizationProfitablegrowth

Energy Middle East growth strategy

….Fuel Flex

….Local Nationals ….Short Cycle

….Infrastructure Approach

Technology

• #1 for gas reserves/ sq mile

• ~250 years UK demand

• $400MM orders generated

GE installed base technology

Ras Laffan

QATAR

Doha

NorthField

GT Fleet

Fr5 12

Fr7 10

Fr9 18

A solution for any scale

80 MT/y

2.3

7.8 MT/y

Fr5 Fr7E Fr9E

2.7

50

400

Power (MW)

Fr9-driven large LNG super-trainsup to 7.8 MT/y

20

40

60

80

Liquefaction (MT/y)

2007 2008 2009

~80% of world’s LNG production done with GE compression technology

Qatar LNG industry

11

Technology differentiation …

• First and largest Hybrid IWPP in ME

• 656 MW / 100 Million Gallon Per Day

• Commissioned in 2003

• GE extension underway

Technology Differentiates GE

Fujairah

• Biggest Single GT site in the ME

• 2500 MW / 36 7EA’s

• Commissioned 1998

• Tri-Fuel Capabilities

PP9

Customer solutions

13

KSA

42%

UAE

35%Oman

2% Bahrain3%

Qatar6%

Kuwait12%

Gulf cooperation countries

Desalination opportunity

GE value added solutions

60% of the world’s desalination opportunities are in the Middle East

• Play various roles from

equipment supply to EPC

contractor to equity investors

• Promote and develop hybrid

technology for more efficient

systems

• Develop fuel flexibility solutions

$30B water and power opportunities to 2015

14

King Abdullah Economic City

Key players

The shareholders structure of “EMAAR Economic City” the $2.4 billion joint venture company:

EMAAR Master developer

Introduction

US$26.7 billion project

Identified business opportunity

$0

$100

$200

$300

$400

Energy

W&PT

‘07 ‘08 ‘09

($millions US)

• Assigned a leader with a team across the infrastructure

• Infrastructure proposal submitted

• 6,000 MW demand projected• 1.3m cubic meter/day of water • 500 thousand jobs• 2MM population

Dynamics by 2020

Fulfillment

16

15%AAGR

Fleet

• 391 - 5&6 B technology

• 162 - 7EA’s technology

• 78 - 9E’s technology

• 12 - F technology

• 45 F’s in coming two years

• From $9MM in ‘02 to $55MM CSA orders

• $500MM YTD CSA backlog

• $1 B potential CSA backlog in coming two years

Middle East installed base

Fulfillment teams

• 30+ contractual services team

• 30+ field engineers pool

• 10 commercial operation team

• 5 product service team

Services coverage

230

460

’07-’10F’02 ’06

30% AAGR

Orders

($millions US)

Localization

18

Lebanon

Jordan

Iraq

Bahrain

Kuwait

Qatar

U.A.E.

Yemen

Oman

Saudi Arabia

GE Energy Middle East presence

Local resources

• Operating since late 1930’s

• Over 600 employees

• Locals vs expats

Local capabilities

• 3 regional service shops MEELSA, MEPCO, GTS

• Technical training center – Qatar

• Optimization and control customer application center – Bahrain

• Rotating laboratory at Petroleum Institute, Abu Dhabi

• Regional offices: UAE, Saudi Arabia, Qatar, Oman, Kuwait

Syria

19

20%AAGR

GE Energy in the Middle East

Big opportunities• $30B spend in power and water to 2015

• Multi infrastructure clusters

• Diversified industrial growth

Well established• More than 600 employees in the region

• Growing installed base

• Local fulfillment capabilities

Well positioned for growth• Growth strategy

• Strategic alliance

• Localized solutions

21% AAGR

’07-’10F

Orders($billions US)

’03 ’06

1.7

1.3

Growth in the Middle East

Steve BolzePresident – Power Generation

GEEnergy

Abdullah TaibahRegion Executive, ME