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MHI supplies Chinese gas-fired projects

16 October 2006 -- Mitsubishi Heavy Industries, Ltd. (MHI) has received an order from Dongfang Steam Turbine Works (DFSTW), one of China's top three turbine manufacturers based in Deyang, Sichuan province, for supply of major components for four units of M701F gas turbines.

The gas turbines to use the MHI-made components will serve as the core equipment of the Fujian Putian power plant, a 1,600 MW natural gas-fired gas turbine combined-cycle (GTCC) power plant to be constructed by CNOOC Fujian Gas Power Limited. The plant's first power generation unit is scheduled to go on-stream in June 2008.

The GTCC power plant will be constructed in Putian district, approximately 150 kilometers northeast of Xiamen. In 1980 Xiamen was designated as a Special Economic Zone, and many foreign companies have invested in the area. The new power plant will respond to the resulting robust electricity demand. MHI will manufacture and supply the gas turbine blades, rotors and control systems -- key components of M701F gas turbines.

Combustors will be supplied by Mitsubishi Heavy Industries Dongfang Gas Turbine (Guangzhou) Co., Ltd., which was jointly established by MHI and DFSTW in 2005. DFSTW will provide steam turbines. Mitsubishi Corporation will handle the trade particulars.

According to MHI, coal-fired power generation has long been the mainstream in China, but today the Chinese government is working to increase the ratio of gas-fired power generation in order to diversify energy sources. The latest order follows two bulk orders for GTCC power plants placed by China to companies worldwide, including MHI, since 2003.

As China intends to enhance domestic companies' independent manufacturing capability, for this project, MHI will supply components as a subcontractor to DFSTW, rather than under a conventional consortium contract scheme.




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