Foreign companies have clinched substantial orders to supply gas and steam turbines for large natural gas-fired thermal power plants in China. The plants are part of the central government's efforts to reduce China's dependence on cheap but polluting coal as its major energy source.
A consortium of companies including Mitsubishi Heavy Industries is to supply 10 turbines and core machinery in a contract worth about US$640m. They are destined for four power plants in the Beijing and Guangdong regions. The first turbine will be imported from Japan, while the remainder will be manufactured by a joint venture due to be set up in the autumn by Mitsubishi Heavy and Dongfang Electric.
GE Power Systems of the US has been awarded a US$900m contract to supply an estimated 15 turbines for six other plants. This is one of the largest ever orders made by China's power industry.
Huaneng to build Shanghai gas plants Huaneng Power International is to establish three natural gas-fired power plants in Shanghai in partnership with the statebacked energy supplier Shenergy Co. The project received the approval of the State Development and Planning Commission in mid-February. The three 300MW plants will cost a total of Yn3.73bn to build, 75 per cent of which will be funded by bank loans. The natural gas will be supplied from Xinjiang autonomous region via a 4,000km pipeline to Shanghai that is currently being built.