GE Compressor Technology Selected for Milestone Projects in China


FLORENCE, ITALY - April 3, 2007 - GE Oil & Gas has been selected to supply compressor trains for two milestone projects in China that will feature the world's largest coal-based propylene plants.

The two projects are Shenhua Ningxia Coal Industry Group's plant in the Ningxia province of western China; and Datang International Power Generation Co. Ltd.'s facility in Xilinguola, Inner Mongolia. Both complexes will produce approximately 500,000 tons of polypropylene per year from coal when they enter commercial service in early 2009.

These will be the world's first commercial-scale plants based on Lurgi AG's new MTP® (Methanol-to-Propylene) technology for the production of propylene from coal. Propylene is a major commodity in the petrochemical industry, used primarily for the production of polypropylene, a thermoplastic polymer used in a variety of applications.
"We welcome the challenge of supplying compressor trains for these projects, including a syngas/recycle gas compressor train for the 5,000 ton-per-year Shenhua Ningxia methanol plant, the largest capacity commercially available in the world today," said Claudi Santiago, GE Senior Vice President and President and CEO of GE Oil & Gas. "GE pioneered the use of centrifugal compressors in syngas applications, and our technology has continued to evolve through years of experience in ammonia and methanol processes."

"Using coal to produce chemicals and fuels is driving new opportunities in China, and in other parts of the world that have rich coal resources," Santiago added. "By leveraging GE technology and industry experience, our business is well positioned to help support customers in this rapidly growing industry segment over the next few years."

For the Shenhua Ningxia project, in addition to the syngas/recycle gas compressor train GE will supply a hydrocarbon compressor train, spare parts and training. The equipment will be manufactured at GE Oil & Gas facilities in Florence and Massa, Italy, and will be shipped to the project site in the third quarter of 2008.

This will be the largest coal-to-chemical project developed to date by Shenhua Ningxia Industry Coal Group. The facility will include a coal gasifier plant, a methanol-to-propylene unit and a polypropylene unit.

For the Datang International Power Generation project, GE will provide a hydrocarbon compressor train, which will include a large, horizontally split type centrifugal compressor and a condensing steam turbine driver; a de-ethanizer compressor and a polypropylene compressor.

The GE technology was selected for the Datang project by China National Water Resources & Electric Power Material & and Equipment Company. The equipment will be manufactured at GE Oil & Gas facilities in Florence and shipped to China in the second quarter of 2008.

The Shenhua Ningxia and Datang propylene projects will further expand GE's technology base in China's oil and gas industry. Last year, GE was selected to supply compression station equipment for the expansion of China's West-East Gas Pipeline Project, one of the country's most critical infrastructure projects of the 21st century.

About GE's Oil & Gas business
GE's Oil & Gas business is a world leader in advanced technology products and services, operating in all segments of the global oil and gas industry. Based in Florence, Italy, the company offers complete solutions for production, LNG, transportation, storage, refineries, petrochemicals and distribution systems, as well as pipeline integrity solutions including analysis and pipeline asset management. Through its recent acquisition of VetcoGray, GE Oil & Gas has added products, systems and services for onshore and offshore drilling and production to its portfolio.

For more information, contact:
Gabriele Peri
GE
Oil & Gas
+39 055 423 8280
gabriele.peri@ge.com

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