Rolls-Royce wins second contract to power major gas pipeline in India

Thursday, 18 March 2010

Rolls-Royce, the global power systems company, has won its second contract in two years from Gas Authority India Limited (GAIL) to supply power systems for a major gas pipeline project. The new contract is valued at $90 million.

This new order is for four Rolls-Royce RB211 packages which will be used on the 500km Vijaipur-Dadri Bawana Pipeline (VDPL) running from Vijaipur to Dadri, part of the larger VDPL project. This follows a $130 million contract award in 2008 for six RB211 gas compressor sets for the 600km Dahej-Vijaipur (DVPL) pipeline that runs between Dahej in Gujrat to Vijaipur in Madhya Pradesh.

All ten Rolls-Royce gas turbine packages will be used to increase the flow of gas on these key projects in India, which will support GAIL in contributing to the country’s infrastructure requirement.

Tony Ruegger, Rolls-Royce, Executive Vice-President – Oil & Gas, said, “GAIL is investing aggressively to expand their natural gas pipeline network, and we are especially pleased that once again they have selected Rolls-Royce compression equipment for this major infrastructure project.”

The four new RB211-GT61 Dry Low Emissions (DLE) units will be sited at two compressor stations, Kailaras and Chainsa, joining the other six to be located at Vijaipur and Jhabua.

All ten sets will drive RFBB36 gas compressors designed and manufactured by Rolls-Royce.  When all the units are installed they will increase the flow of gas along the lines to help to power industries such as fertiliser, steel and petrochemical in addition to many thousands of homes in the states of Gujarat, Madhya Pradesh, Uttar Pradesh, Haryana, Delhi and Punjab.

The RB211 gas generators will be manufactured at the company’s Montreal, Quebec, Canada facility while packaging of the units and the manufacture of the compressors will take place in Mount Vernon, Ohio.  All the equipment for this latest contract is scheduled for delivery in the first quarter of 2011.

About Rolls-Royce:

  1. Rolls-Royce, a world-leading provider of power systems and services for use on land, at sea and in the air, has established a strong position in global markets - civil aerospace, defence aerospace, marine and energy.
  2. As a result of this strategy, Rolls-Royce today has a broad customer base comprising more than 600 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 2,000 marine customers, including 70 navies, and energy customers in nearly 120 countries, with an installed base of 54,000 gas turbines.
  3. Rolls-Royce employs over 38,000 skilled people in offices, manufacturing and service facilities in 50 countries. The Group has a strong commitment to apprentice and graduate recruitment, and to further developing employee skills.
  4. In 2009, Rolls-Royce invested £864 million on research and development, two thirds of which had the objective of further improving the environmental aspects of its products, in particular the reduction of emissions.
  5. Annual underlying revenues were £10.1 billion in 2009, of which about half came from services revenues.  The firm and announced order book stood at £58.3 billion at 31 December 2009, providing visibility of future levels of activity.

About GAIL:

  • GAIL (India) Limited, is India's flagship Natural Gas company, integrating all aspects of the Natural Gas value chain (including Exploration & Production, Processing, Transmission, Distribution and Marketing) and its related services.
  • GAIL has more than 7,000km of Natural Gas high pressure trunk pipeline with a capacity to carry 148 MMSCMD of natural gas across the country.

About Rolls-Royce in India:

  • Rolls-Royce has a long and proud history of partnership with India that extends to more than 75 years with the Indian Air Force and similarly its presence in India’s civil aerospace sector goes back to over 75 years. Its partnership with Hindustan Aeronautics Limited (HAL) in Bangalore is now in its 54rd year. Today, there are over 1,300 Rolls-Royce engines in service in India. The company’s global market sectors – civil aerospace, defence aerospace, marine and energy – are all well represented in the country.
  • In India the energy business has more than 100 gas turbines in service generating power and driving gas compressors for on-shore and offshore applications. Fourteen are RB211s with the remainder being Avon and 501 engines. In addition, more than 250 Rolls-Royce reciprocating engines operate in India. Total installed capacity of Rolls-Royce energy customers in India exceeds 1500MW.  Rolls-Royce India also provides engineering support, project management and after-sales customer services for its reciprocating (diesel and gas) engines.
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