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Rolls-Royce signs USD 175m contract to supply Kazakhstan-China gas pipeline

12th September 2013

The British power systems company will supply compressor units and other services for the pipeline network

A Kazakhstan based pipeline
The equipment includes twelve Rolls-Royce RB211 gas turbine pipeline compressor units that will operate in four stations across the 1,115 km pipeline.

Rolls-Royce on Thursday announced it signed a contract to supply equipment to the Kazakhstan-China gas pipeline, part of a larger pipeline network which will be the first to supply Central Asian natural gas to China.

 

The group has signed an USD 175m contract to supply the joint venture between Kazakhstan's KazMunaiGaz and China's National Petroleum Corporation (CNPC), known as AGP, for the Level C pipeline.

 

The equipment includes twelve Rolls-Royce RB211 gas turbine pipeline compressor units that will operate in four stations across the 1,115 km pipeline. The company has already supplying eleven RB211 gas turbines in a deal secured in 2009 for the Level A and B pipelines.

 

The Kazakhstan-China pipeline project is part of the 1,833 kmCentral Asia-China gas pipeline, the first pipeline to bring Central Asian natural gas to China.  It will transport over 55 billion cubic meters of gas each year from Turkmenistan to China via Uzbekistan and Kazakhstan.

 

Ergil recently signed a deal with one of the main contractors in the Kazakh section of the pipeline KazStroyService to supply its pig handling systems. The deal follows plans to increase the capacity of the pipeline from 14 million tons to 20 million tons per year of gas by 2014.

 

China and Kazakhstan have been tightening their energy ties of late. Both countries will sign 22 agreements on Saturday, including several energy deals such as the USD 5bn purchase by CNPC of ConocoPhillip’s 8.33 per cent stake in Kazakhstan’s Kashagan oil project