GE compressors for Chinese natural gas pipeline

GE will supply eight centrifugal compressor packages and auxiliary equipment for the Sinopec Sichuan-to-East China pipeline, which will deliver natural gas to the Shanghai area

China Petroleum and Chemical, (Sinopec), the second largest oil and gas producer in China, has selected GE Oil and Gas compression technology for a new pipeline project designed to help ease natural gas shortages in the Chinese eastern commercial hub.

The Sinopec Sichuan-to-East China pipeline will transport natural gas from the Puguang field in Sichuan to the Shanghai area.

The pipeline, which will have an initial capacity of six billion cubic metres of gas, that will be increased to 15 billion in the future, is scheduled to begin service in 2009.

The main trunk of the new pipeline will cover more than 1600 kilometers and will cross several Chinese provinces including Sichuan, Hubei, Anhui and Zhejiang.

An 842-kilometer secondary line will originate from Yichang City in Hubei and end in Puyang City in Henan, another central province.

Two shorter branches will be located near the Puguang gas field and one in the east near Shanghai.

"This project supports the plans for China to more than double the share of natural gas in the country energy mix by the end of the decade, in an effort to increase the use of cleaner fuels to meet the enormous energy needs," said Claudi Santiago, president and CEO of GE Oil and Gas.

"It will deliver natural gas from Puguang, which is the largest Sinopec field, to the thriving eastern region where fuel demand is very strong".

GE and Sinopec are also forming a two-year strategic agreement to foster on-going cooperation between the two companies.

Under the terms of this agreement, the two companies will deepen their co-operation in new product research and development, the application of new technology, products and technology standardisation, quality management, equipment maintenance and technical training.

"This agreement provides a framework for building a longer-term, mutually productive association with Sinopec, a company that is playing a vital role in supporting the vibrant Chinese economy," said Santiago: "Forming local and regional agreements is at the core of GE efforts to increase our presence in the country, which represents one of the world's greatest growth opportunities".

GE, which hopes to double its China revenues to USD10 billion by 2010, is a worldwide sponsor of the 2008 Summer Olympics in Beijing, and is using the Games to help showcase a broad spectrum of technologies and services for supporting the on-going expansion of the country infrastructure.

In particular, GE is highlighting its ecomagination products, designed to help customers meet world environmental challenges.

As part of the overall growth in China, the new Sinopec pipeline project further expands the presence of GE Oil and Gas technology in the country.

Two recent examples: Last year, GE Oil and Gas was selected to supply compressor trains for two milestone projects that will feature the world's largest coal-based propylene plants.

In 2006, the business was selected as an equipment supplier for the expansion of the landmark West-East Pipeline Project, one of the most critical infrastructure projects of the 21st century.

Sinopec is an integrated energy and chemical company with upstream and downstream operations.

Its principal activities include exploring, developing, producing and trading crude oil and natural gas; processing crude oil into refined oil products; and producing and distributing chemical products.

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