Caterpillar to power Asian gas pipeline in Kazakhstan

Caterpillar Inc, the world's largest construction and mining equipment maker, has been selected to power the 1,300km Asian gas pipeline in Kazakhstan.

Peoria, Illinois-based Caterpillar has been selected to provide gas generator sets for the Asian Gas Pipeline, a joint venture between KazMunayGas and China National Petroleum Corporation.

Once completed, the Asian Gas Pipeline, which is the region's largest pipeline construction project, will transport 30 billion cubic meters of natural gas from Turkmenistan to China and 10 billion cubic meters of natural gas from Kazakhstan to China per year, or approximately two per cent of China's energy consumption.

The construction of the pipeline initially started in July 2008 and is due to be completed in late 2013 or early 2014. The whole pipeline is about 6,500 kms in length, of which, 200km is in Turkmenistan, 510.5km in Uzbekistan, 1,300km in Kazakhstan and 4,500km in China.

Caterpillar Global Petroleum has been in Kazakhstan, supplying an extensive array of power solutions including engines and generators to the region for decades.

Turkmenistan has agreed to supply China with up to 40bn cubic metres a year of gas, about half its annual production, through the new pipeline, which breaks Russia's monopoly over gas export routes from central Asia.

The gas from the pipeline will be supplied to 14 provinces, autonomous regions, municipalities and special administrative regions of China, including Shanghai and Hong Kong.