When completed, China’s massive West-to-East gas pipeline will stretch more than 12,000 miles — longer than three Great Walls of China. As one of the largest gas transmission projects in the world, the pipeline is at the heart of China’s energy future – and at the heart of the pipeline is GE Oil & Gas, which has again been selected as the primary supplier of critical compression equipment in a new $300 million deal.


Can you dig it? GE equipment that is manufactured in Florence, Italy and Cincinnati, Ohio is then shipped to China to help send the gas through the giant pipeline, a portion of which is seen here being constructed last July. (Xinhua Photo)

Born from jets: The GE technology driving the gas turbines being used originally was developed by GE Aviation. GE’s equipment operates at gas boosting stations, which are located all along the pipeline and compensate for the loss in gas pressure. Without the stations, the natural gas might not reach the end-users. Click the images for a larger view.

The winning of the new bid with PetroChina, which was announced today, is the third win for GE over the past several years of the pipeline’s construction –- bringing GE’s total contracts to more than half a billion dollars.

Critical to GE’s partnership on the pipeline is the company’s understanding of the technology. In a uniquely GE form of innovation synergy, the gas turbines in the latest contract are based on technology originally developed by GE Aviation –- and provide a live blueprint of how GE business units can share breakthroughs to meet the needs of customers across industrial sectors.

By redesigning the packaging of the turbo-compressor units and simplifying installation procedures, GE is able to reduce installation time and meet China’s aggressive construction timetable –- which calls for the massive project to be completed in the next 5-6 years.

When completed, the pipeline will bring China’s primary energy consumption rate of natural gas to 5 percent, up from 3.5 percent. To put it in perspective, the total flow of the pipeline is equal to 30 percent of all the gas used in a year in the United Kingdom. Natural gas transported by the first West-to-East pipeline is already used for electricity production in the Yangtze River Delta area and there is a plan to replace the use of coal by gas in Shanghai by 2010. Given that Shanghai has a population of over 20 million, the impact would be vast.

* Learn more details in GE’s announcement
* View a map of the pipeline route
* Read The Financial Times’ story about the deal
* Watch CNBC’s interview with GE’s Claudi Santiago
* Read GE’s announcement of its earlier contract
* Read “GE Oil & Gas Sets Installation Record in China“