$196 million in the pipeline

GE’s Oil & Gas business has been awarded over $196 million to supply gas turbines, compressors and installation services for China’s West-East Gas Pipeline Project.

GE’s Oil & Gas business has been selected as an equipment supplier for the expansion of China‘s West-East Gas Pipeline Project. Under a contract worth more than $196 million, GE will provide gas turbines, compressors and installation services for 12 new compression stations.

GE was selected for the project by the China Petroleum Material and Equipment Corporation and the West East Gas Pipeline Company of PetroChina Company Limited, based in Beijing. The pipeline runs for nearly 4,000 kilometres, transporting natural gas from the remote Xinjiang Uygur Autonomous Region of western China to the economic hub of Shanghai and other eastern provinces along the pipeline route.

“In order to support the country’s growth and its strong commitment for energy security, the Chinese government decided to increase the capacity of the West-East pipeline from 12 billion cubic meters a year (BCMY) to 17 BCMY. This will make additional power available to support the market demand, and is one of China‘s most strategic projects,” said Claudi Santiago, president and CEO of GE’s Oil & Gas business.

GE will provide 20 PGT 25+ gas turbine-packaged drivers and 24 PCL800 compressors for the pipeline expansion. Each PGT 25+ set includes an LM2500+ gas generator manufactured by GE Aircraft Engines in Cincinnati, Ohio, coupled aerodynamically with a high-speed power turbine manufactured by GE’s Oil & Gas business in Florence, Italy.

In addition to the equipment, GE’s contract includes installation, start-up and training services, and defines the supply of spare parts and personnel for scheduled maintenance for 12 years.

The gas turbines and compressors for eight of the new pipeline compression stations will be shipped and installed in 2006, while equipment for the final four stations will be shipped by the end of 2008 and installed in early 2009. The new stations will be put into operation between August 2006 and September 2009.

Designed to transport 17 billion cubic meters of natural gas a year, the West-East pipeline crosses 10 provinces and is the longest pipeline in China.