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GE Again Selected for China’s West-to-East Pipeline

Source: 5/17/2011, Location: Asia

GE Oil & Gas compression technology has again been selected to help support one of China’s most important energy infrastructure projects. In two contracts amounting to nearly $100 million, GE (NYSE: GE) will supply six gas turbine-driven compressor trains and nine electric motor–driven compressors to PetroChina for the Eastern portion of the second West-to-East Pipeline (WEPPII).

PetroChina is the owner and developer of the massive WEPPII project, which runs through 13 provinces and autonomous regions and is playing a major role in supporting China’s long-term energy growth and security. Since 2005, GE has supplied compression equipment and turbine technology for WEPPII, as well as for the first West-to-East Pipeline (WEPPI), with contract wins totaling approximately $700 million.

Claudi Santiago, president and CEO, GE Oil & Gas, said: “These latest PetroChina contract awards further underline GE’s role as a major supplier of high-tech oil and gas equipment to support critical energy infrastructure projects in the region. GE’s expanding installed-based includes more than 120 gas turbine and 110 electric motor driven compressor trains for pipeline projects vital to energy supply in China and Asia.”

Santiago added: "GE is committed to supporting its customers in China by further expanding our strong localized presence. We have invested hugely in resources and capabilities to extend and strengthen our local work-force, including in engineering, manufacturing, project management, sales and field-service engineering functions.”

The compression equipment for the latest WEPPII contracts will include PCL compressors driven by GE PGT25+ gas turbines. Based on aeroderivative gas turbine technology initially developed by GE’s aviation business, the PGT25+ is an example of how GE Oil & Gas brings reliable, high-technology products developed from other GE businesses for application in the oil and gas industry. Cross-fertilization of engineering expertise is a major differentiator that GE brings to customers in a wide range of industries.

The PGT25+ gas turbines will be manufactured in both Cincinnati, Ohio, of the United States and Florence, Italy, and the compressors in Florence, Italy, with shipment to China expected between the second half of 2011 and the third quarter of 2012.

GE Oil & Gas has been active in China for more than 30 years and is a leading player in the refinery and petrochemical sectors of the country’s oil and gas business. With the growing demand for natural gas transmission, as illustrated by the two West-to-East pipeline projects, GE Oil & Gas has greatly expanded its role as a supplier of pipeline compression equipment in the country and the region.

Currently, GE’s compressors and aeroderivative gas turbines are operating on nearly 30 Chinese pipeline compression stations. Committed to helping its customers meet their challenging schedules, while continuing to focus on performance and reliability, GE Oil & Gas redesigned the packaging of turbocompressor units and also simplified normal installation and commissioning procedures, resulting in reduced installation time and site activities.

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