The industrial giant’s London-based oil and gas division is planning to buy Cameron International‘s high-horsepower natural gas gathering and processing equipment for $550 million, its first big move since it created a division to supply the $11 billion downstream technology market Jan. 1.
The surge in oil and gas production from North American shale has enabled big refiners to buy cheaper feedstocks and invest more in technology upgrades, said Mike Hosford, general manager for GE’s distributed gas business.
“There are a lot of downstream projects on the board that haven’t been there in the past, and you can say shale was the instigator that got this going,” Hosford said. “The market is buoyant and growing.”
The Cameron deal, expected to close later this year, would add high-speed reciprocating compressors — used in gas gathering, processing and transmission — to GE Oil & Gas’ downstream gas business, which has lower-horsepower units, the company said Monday.
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