Siemens Receives Two Orders for Gas Pipeline Projects in China


Market entry for pipeline compressors in China

Siemens Energy has secured two orders for key systems for gas pipeline projects in China. The company will supply two variable speed drive (VSD) systems for the gas pipeline project Shanjing III Yangqu station in Shanxi province and four centrifugal compressors for the gas pipeline project Jining in the east of China. The customer for both projects is China National Petroleum Corporation (CNPC) Materials Company.

Siemens was awarded the follow-up contract for the Shanjing III project based on its convincing performance in the Shanjing I (three VSD systems) and Shanjing II extension (eight VSD systems) pipeline projects. These projects were successfully completed in 1997 and 2009, respectively. The scope of supply for the new order includes two VSD systems, all of the ancillaries such as cooling systems, control systems, transformers and harmonic filter equipment. The VSD systems for Shanjing III will be shipped in 2011. The pipeline supplies natural gas from the western province Shaanxi to China's capital Beijing. "The follow-up order from China is a clear sign that Siemens Oil and Gas is strengthening its position in the Chinese market," said Tom Blades, CEO of the Oil and Gas Division of Siemens Energy.

For the Jining project in eastern China, Siemens will supply four centrifugal compressors. The Jining pipeline will connect the West to East gas pipeline I and Shanjing II gas pipeline. "As our first-ever pipeline compressor order from China, this marks Siemens' entry into the huge Chinese market for compressor stations for natural gas pipelines. One decisive factor for this success is local content. With our broad-based portfolio for the midstream oil and gas markets, we can provide our customers with efficient, reliable and ecofriendly solutions in China and worldwide," added Blades.

An estimated USD140 billion will be spent on oil and gas pipeline projects worldwide between 2010 and 2012. About 72 percent of these pipelines will be for natural gas, especially in Asia. In China alone, 50.000 kilometers of pipeline are planned in the upcoming years.

The Siemens Energy Sector is the world's leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2009 (ended September 30), the Energy Sector had revenues of approximately EUR25.8 billion and received new orders totaling approximately EUR30 billion and posted a profit of EUR3.3 billion. On September 30, 2009, the Energy Sector had a work force of more than 85,100. Further information is available at: http://www.siemens.com/energy.

Siemens AG
Corporate Communications and Government Affairs
Wittelsbacherplatz 2, 80333 Munich
Germany

Media Relations: Eva-Maria Baumann
Phone: +49 9131 18-3700
E-mail: eva-maria.baumann@siemens.com
Siemens AG
Energy Sector - Oil & Gas Division
Freyeslebenstr. 1, 91058 Erlangen, Germany

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