Rolls-Royce wins key $150 million Chinese west-east gas pipeline contract

Rolls-Royce, a leading provider of gas turbines for global energy markets, today announced that it has won the contract to provide Rolls-Royce pipeline compression equipment for the prestigious West-East China Gas Pipeline Project (WEPP). The contract is valued at over US$150 million.

The WEPP contract follows Rolls-Royce's recent announcement that it had also won a $107 million order for six industrial Trent gas turbine compressor sets, for the Dolphin Energy Limited subsea gas pipeline, to run from Qatar to the United Arab Emirates.

At a cost of $8.5 billion, WEPP represents one of the largest projects currently being undertaken in the burgeoning Chinese energy market. It involves the construction of a 3,900km/2,400 mile natural gas pipeline from the Tarim basin in the West Gobi desert to the city of Shanghai on China's eastern coast. The route will cross nine Chinese provinces.

Once completed, the pipeline will carry approximately 1.2 billion cubic feet of natural gas per day, or the equivalent amount of gas required daily to heat six million homes. Current estimates suggest that there is a 20 year supply of gas in the Tarim basin.

"These abundant natural gas supplies will play a major role in satisfying the future energy needs of China and surrounding countries," said Tom Curley, President of the Rolls-Royce Energy Business. "We are extremely pleased to have been selected as a major supplier to help bring these important resources to the people of China. This success also confirms the technical strength of our products around the world."

The pipeline will include 10 compression stations on the Western portion, and 18 distribution stations along the downstream trunk line. Two gas turbine packages will be installed at six compression stations, and motor-drive sets will be installed at the remaining four.

Rolls-Royce will provide 12 RB211-powered 6562 gas turbine packages, driving Rolls-Royce RFBB36 centrifugal pipeline compressors. It will also supply eight motor-driven RFBB36 compression sets and related controls for each of the compression units.

The first two units are scheduled for delivery in March 2004, with remaining units to be delivered in accordance with natural gas production requirements. All units will be packaged at Rolls-Royce facilities at Mount Vernon, Ohio, USA.

A recognised leader in natural gas transmission applications, Rolls-Royce equipment is used on pipelines in 26 countries.

The industrial RB211 gas turbine is derived from its aero cousin, which has performance founded in Boeing 747 and Lockheed 1011 (TriStar) aircraft applications. Today, with over 15 million operating hours, the industrial RB211 is one of the most advanced, reliable, and easy-to-maintain aeroderivative gas turbines available for global energy installations.

Rolls-Royce pipeline compressors are among the most efficient available on the market. Over the last 50 years, over 850 units have been installed in pipeline applications around the world.