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STWA Efficiency Unit Arrives in China for Phase II Testing

Source: 9/14/2012, Location: Asia

STWA, Inc., a developer of applied solutions for oil and fuel delivery systems in the multi-billion dollar oil pipeline and diesel engine markets, announced that the Company's groundbreaking oil pipeline energy-efficiency system known as Applied Oil Technology™ (AOT™) has arrived in China for testing and government approval for importation into the world's largest energy consuming nation. The unit is to begin Phase II of the three-Phase commercialization acceptance process as mandated by China Petroleum Pipeline Administration (CPP).

The STWA crude oil pipeline flow improvement hardware solution, AOT™ 1.2v, has arrived at the port of Tianjin, China, about 90 miles southeast of Beijing, and is undergoing customs clearance and government compliance inspections at this time. The Chinese will be testing the pre-production device to determine its value to their domestic energy production and transport markets. The unit is the very device used in successful testing with the U.S. Department of Energy (US DOE) at the Rocky Mountain Oilfield Testing Center (RMOTC) located on the U.S. Naval Petroleum Reserve #3 near Casper, Wyoming. Testing results can be found at:

Earlier this summer, STWA conducted successful laboratory testing together with CPP/CNPC at the Pipeline Flow Assurance R&D Center in Langfang, China. The Company's new flow assurance technology, AOT™, is of interest to China for its ability to improve the flow characteristics and maximum flow rates within the existing 13,000 miles of pipeline that network throughout the country.

The success of the Phase I laboratory testing unlocked interest and permission to bring the pre-production AOT™ 1.2v to China in order to conduct Phase II of the 3-phase process leading to commercial acceptance and implementation of the new technology throughout the Asian nation.

According to the United States Energy Information Administration, CNPC manages 70% of the approximately 13,000 miles of pipeline in China, with an additional 6,000 miles to be built by 2015. Testing is slated to take place at the beginning of October after installation has been completed.

"China needs flow improvement technology such as AOT™ now more than ever," stated STWA CEO Mr. Cecil Bond Kyte. "The nation's oil and energy needs are growing at over a million barrels per day, per year, according to U.S. government figures. By installing AOT™ systems into their existing networks of pipelines, in addition to the new lines that are being built over the next two decades, they could save billions of kilowatt-hours of electricity, while increasing the transport rates of their pipeline networks to alleviate bottleneck concerns. We together feel that on-demand viscosity reduction will be a must-have for every pipeline throughout the country, and this testing is to support those efforts."

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