Monday, March 10, 2008

Sinopec adopts GE compression technology for pipeline project

Sinopec<600028><386>, the nation's top oil company, reached an agreement with General Electric Oil & Gas to apply its compression technology to the new gas pipeline project, and they also signed a two-year strategic contact, told by sources.

GE will provide eight centrifugal compressors and accessory equipments to Sinopec's West-East Gas Pipeline Project. The pipeline will commence operations in 2009, with the transfer capacity of 6 billion cubic meters, which will be increased to 15 billion cubic meters in future.

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

In addition, both sides agreed to strengthen their cooperation on R&D, application of new technology, standardization, quality management, equipment maintenance and technical training, according to the strategic contract.

As the partner of Beijing Olympics, GE hopes to double its revenue in the Chinese market to US$10 billion by 2010.

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