Construction of West-to-East Pipeline Running Well Ahead of Schedule
FLORENCE, Italy--24 November 2008-- GE Oil & Gas recently completed work ahead of schedule for two of the final four compression stations being built for an expansion of China's landmark West-to-East Gas Pipeline, increasing the supply of natural gas to Shanghai prior to the upcoming harsh winter season.
First firing of the gas turbine-driven compressor unit at the Yanchuan compressor station was achieved on October 11, more than two months ahead of schedule. The total project was finished in just over three months, 46% faster than previous installations on the pipeline, which is a new record for GE Oil & Gas. The Yanchuan station is increasing the flow and pressure in the last section of the pipeline.
"Among the key factors that enabled us to achieve this record were a close partnership with our customer, as well as Lean installation initiatives at the site, pre-assembly of the auxiliary equipment at the supplier's workshop, the availability of skilled field service engineers and lessons learned from previous projects," said Joe Mastrangelo, general manager for equipment at GE Oil & Gas.
"We are pleased with the speed and effectiveness that has been demonstrated by GE Oil & Gas during this crucial installation period," said Huang Zejun, president of PetroChina West East Gas Pipeline Company. "This is the payoff for a well-coordinated effort and cooperation between the two parties".
GE completed a similar equipment installation on October 30, at the Dingyuan station, downstream from the Yanchuan station and closer to Shanghai. This project was completed in four months, 40% faster than previous installations.
The new Yanchuan and Dingyuan compressor stations are part of a 12-station pipeline expansion project to boost the capacity of the West-to-East Gas Pipeline from 12 billion cubic meters a year (BCMY) to 17 BCMY. It is the longest pipeline in China and is a key part of the country's plan to use natural gas for the generation of additional power to help meet the growing demand for energy.
The pipeline runs for nearly 4,000 kilometers, transporting natural gas from the remote Xinjiang Uygur Autonomous Region in western China to the economic hub of Shanghai and other eastern provinces along the pipeline's route.
GE was selected to provide the gas turbines, compressors and installation services for all 12 new compressor stations by the China Petroleum Material and Equipment Corporation and the West East Gas Pipeline Company of PetroChina Company Limited, based in Beijing. GE installed the first eight new compressor stations in 2006 and is scheduled to complete the final two stations in 2009.
"PetroChina selected GE Oil & Gas for the expansion project after an intense review of various bidders' capabilities to successfully meet the project's extremely tight schedule and we are very pleased to have demonstrated that PetroChina's confidence in GE was well-placed," said Mastrangelo.
GE is providing 22 PGT 25+ gas turbine-packaged drivers and 24 PCL800 compressors for the pipeline expansion project. Each PGT 25+ set includes an LM2500+ gas generator manufactured by GE Energy's aeroderivative business in Cincinnati, Ohio, coupled aerodynamically with a high-speed power turbine manufactured by GE Oil & Gas 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.
When the expansion project is completed next year, the entire West-to-East Gas Pipeline will feature 23 compressor stations.
In addition to the pipeline extension project, earlier this year GE Oil & Gas also was selected to supply pipeline compression equipment for China's second West-to-East gas pipeline, which will carry natural gas from Turkmenistan to Shanghai and southern Guandong Province, to help meet the region's growing energy demand. GE also has been selected as an equipment supplier for a Turkmenistan pipeline project that is partially owned by Petrochina.
As part of GE's overall growth strategy in China, the two pipeline projects further expand the presence of GE Oil & Gas technology in the country. Other recent projects include the supply of equipment for the Sichuan to East China Pipeline, and the supply of compressor trains for two milestone projects that will feature the world's largest coal-based propylene plants.
About GE Oil & Gas
GE Oil & Gas (www.ge.com/oilandgas) is a world leader in advanced technology equipment and services for all segments of the oil and gas industry, offering complete solutions for production, LNG, transportation, storage, refineries, and petrochemicals. It also provides pipeline integrity solutions including software and asset management. With its acquisition of VetcoGray and Hydril Pressure Control, GE Oil & Gas now offers additional products, systems and services for drilling, completion and production within onshore, offshore and subsea applications.
About GE
GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com. GE is Imagination at Work.
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