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GE Technology for Sinopec Pipeline

Posted on March 7, 2008

China Petroleum and Chemical Corp. (Sinopec), China’s second largest oil and gas producer, has selected GE Oil & Gas compression technology for a new pipeline project designed to help ease natural gas shortages in the country’s eastern commercial hub. GE and Sinopec are also forming a two-year strategic agreement to foster on-going cooperation between the two companies. GE will supply eight centrifugal compressor packages and auxiliary equipment for Sinopec’s Sichuan to East China pipeline, which will transport natural gas from the Puguang field in Sichuan to Shanghai in China’s eastern region, to help offset fuel shortages there. The pipeline, which will have an initial capacity of six billion cubic meters 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.

Under the terms of the strategic agreement between GE Oil & Gas and Sinopec, the two companies will deepen their cooperation in new product research and development, the application of new technology, products and technology standardization, quality management, equipment maintenance and technical training.

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