29-05-2013

Siemens and China National Petroleum Corporation conclude framework agreement

Siemens has concluded a framework agreement with China’s biggest oil and gas corporation, China National Petroleum Corporation (CNPC), to supply the entire electrical engineering and electrical systems for the first phase of the planned Guangdong Petrochemical Refinery in China. The refinery will be built in Jieyang in the southern Chinese province of Guangdong and, once completed, will be the largest refinery in China. The first stage of the plant complex is scheduled for commissioning in late 2015.

The framework contract covers supply of the electrical equipment and all control systems for the entire refinery. This includes for example SF6 gas-insulated switchgear stations (GIS) with a rating of 220 kV as well as 220kV /110kV power transformers and 35kV/10kV distribution transformers, basic automation systems, PCS7 control systems, 35 kV gas-insulated and 10 kV air-insulated switchgear. Protection and relay devices complete the current distribution. Under the terms of a strategic cooperation agreement signed with CNPC in 2012, Siemens will also provide compressors for the air separation process and wastewater treatment solutions for the project. Overall, the three Siemens sectors Energy, Industry and Infrastructure & Cities are involved.

"For Siemens, winning this major refinery project marks a milestone in the context of our ongoing cooperation agreement with CNPC. A framework agreement covering the complete Siemens electrical systems portfolio is unique to date in the company's history," says Adil Toubia, CEO of Siemens Energy's Oil & Gas Division.

When the first phase of construction is finished, the refinery will already be able to process 20 million tons of heavy oil per year. Completion of the second phase will boost the refinery's capacity to 50 million tons per year. As the biggest refinery in China, the project plays a key role in meeting the country's booming demand for oil.