Rolls-Royce To Power Kazakh-China Gas Line

October 2013, Vol. 240 No. 10

Rolls-Royce has announced a $175 million contract to supply Asia Gas Pipeline LLP (AGP) with equipment and related services to power the flow of natural gas through Kazakhstan’s Line C Gas Pipeline, part of the vast 1,833-km Central Asia-China Gas Pipeline network.

Rolls-Royce has announced a $175 million contract to supply Asia Gas Pipeline LLP (AGP) with equipment and related services to power the flow of natural gas through Kazakhstan’s Line C Gas Pipeline, part of the vast 1,833-km Central Asia-China Gas Pipeline network.

Rolls-Royce will supply AGP, a joint venture between Kazakhstan’s KazMunaiGaz and China’s National Petroleum Corporation (CNPC), with twelve RB211 gas turbine driven pipeline compressor units which will operate at four compressor stations along the 1,115-km Line C Pipeline.

The Rolls-Royce RB211 industrial gas turbine.

Beimbet Shayakhmetov, AGP, general director, said: “The AGP Pipeline will help meet Kazakhstan’s domestic energy needs and stabilize China’s energy consumption with cleaner natural gas. Given the huge scale and tight construction schedule of this project we need on-time delivery of reliable and efficient technology.”

Andrew Heath, Rolls-Royce, president – Energy, said: “Rolls-Royce technology is at the heart of China and Central Asia’s growing energy infrastructure. This contract strengthens our relationship with AGP and with Kazakhstan where we have established a strong track record of reliable delivery.”

When it reaches full operating capacity in 2016, the Central Asia-China Gas Pipeline network will transport up to 55 Bcm/a from Turkmenistan and Uzbekistan, through Uzbekistan and Kazakhstan to China. The Line C Pipeline in Kazakhstan will contribute up to 25 Bcm/a of the total capacity, including potential to supply gas domestically to the Republic of Kazakhstan.

The contract is in addition to an award for eleven RB211 gas turbine driven pipeline compressor units secured by Rolls-Royce in 2009 for AGP’s Line A and B pipelines.

CNPC has said the import of Turkmen gas is essential for China to stabilize energy needs. When operational, the deliveries will increase the natural gas proportion of energy consumption of China about 2%, an amount equal to half of China’s estimated natural gas production in 2007. The project is important for Turkmenistan as it will be able to diversify its energy exports by delivering gas eastward instead of deliveries to Russia and Iran.

China is in the midst of substantial deals in the Central Asian energy sector, lending $3 billion to Turkmenistan to develop the South Iolotan field in 2009 and $10 billion to Kazakhstan to pay for future oil supplies.

Of the pipeline’s 1,833 km, 188 km are located in Turkmenistan and 530 km are in Uzbekistan. The diameter of the pipeline is 1,067 mm (42 inches). Line A was completed in 2009. Line B increased capacity up to 40 Bcm/a and was completed in 2010. About 30 Bcm would be supplied from Turkmenistan and 10 Bcm from Kazakhstan. The pipeline is expected to cost US$7.3 billion. The project also includes a purification plant at Samand-Depe to remove high sulfur content of natural gas.

In another recent development, Rolls-Royce was awarded a US$40 million contract to supply equipment and related services to power the flow of natural gas through the Uzbekistan section of the Turkmenistan-China natural gas pipeline.

Rolls-Royce will supply Asia Trans Gas (ATG LLC), a joint venture between Uzbekistan’s Uzbekneftegaz and China’s National Petroleum Corporation, with three RB211 gas turbine driven pipeline compressor units for operation at a compressor station on the 530-km Uzbekistan section of the 1,830-km Turkmenistan-China natural gas pipeline.

The Uzbekistan section of the Turkmenistan-China natural gas pipeline will transport 25 Bcm/a of gas from Turkmenistan, through Uzbekistan and Kazakhstan, to China.

Rolls-Royce will manufacture and package the equipment at its energy facilities in Montreal, Quebec, Canada and Mount Vernon, OH.

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