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For the trade press

New Test Center Groundbreaking in Duisburg
Siemens invests EUR90 million in the Emerging Oil and Gas Market

Duisburg 2006-05-15
 

One of the world’s largest and most modern centers for the assembly and testing of compressor trains for use in oil and gas industry megaplants is to be built in Duisburg, Germany. Siemens Power Generation (PG) is investing some EUR90 million in this facility. At the groundbreaking ceremony, North-Rhine Westphalia’s Minister of Economics Christa Thoben received strong support from the Mayor of Duisburg, Adolf Sauerland, and from Klaus Voges, chairman of the managing board of Siemens PG.

“With this investment, Siemens is demonstrating its commitment to the company’s Duisburg location and, at the same time, positioning itself as one of the leading vendors in the emerging oil and gas market,” stated Voges. By the year 2030, experts at the International Energy Agency (IEA) anticipate a need for investment of approximately USD 3 trillion in the gas industry alone. “In the face of the rapidly increasing worldwide demand for energy, we see a growing demand for large-scale compressor solutions rated at over 80 megawatts (MW). At the same time, our customers in the oil and gas industry attribute top priority to the safety and reliability of these plants. Establishing the new test center will open up decisive competitive advantages,” added Voges.

In the words of Christa Thoben, Minister of Economic Affairs of North Rhine-Westphalia: "This investment plays a part in ensuring that North Rhine-Westphalia will continue to be the world’s leading development region for leading-edge energy technology. The new center is an important step forward towards our goal of increased usage of natural gas and alternative fuels to reduce dependence on mineral oil.

" The dynamic development of the oil and gas market is driving growth in the demand for large-scale compressor trains; petroleum is becoming scarce and thus more expensive. Using gas-to-liquids (GTL) processes, natural gas is converted to a clean liquid fuel. Concurrently, refinery plant concepts are being upscaled to enable processing of increasing amounts of feedstocks. In the future, oil and gas recovery will take place at increasingly remote locations and under more challenging conditions. Liquefaction of natural gas and shipping as LNG to consumer countries is therefore gaining importance compared to pipeline transport.

The new test center will be built on a 62,000 square meter site located directly adjacent to the existing Siemens PG manufacturing facility in Duisburg Hochfeld. The new building will be 220 meters long, 40 meters wide and 35 meters high. Completion of the plant is scheduled for June 2007 with commercial operation planned for August 2007. It will then be possible to simultaneously assemble and test as many as eight large-scale compressor trains, including their drives. This investment increases the competitiveness of Siemens PG in the growing oil and gas business and thus secures employment at the Duisburg manufacturing plant. Furthermore, this large project could add up to 150 new jobs in the test center and in fabrication.

Some 2,000 employees, including about 200 trainees, are employed at the headquarters of the Siemens Industrial Applications division in Duisburg. This facility concentrates on activities relating to compressor manufacturing. The center of competency with complete solutions for the oil and gas industry and the division’s worldwide service center are also located here.

The Power Generation Group (PG) of Siemens AG is one of the premier companies in the international power generation sector. In fiscal year 2005 (that ended on September 30), Siemens PG recorded sales of some EUR 8.1 billion and received orders totaling EUR 11 billion. Group profit amounted to EUR 951 million. On September 30, 2005, PG had a work force of approximately 33.500 worldwide.

For further information visit: http://www.powergeneration.siemens.com/home/.

 

Reference number: PG 200605044e
 
Press Office Power Generation
Alfons Benzinger
P.O.Box 32 20, 91050 Erlangen, Germany
Phone: +49-9131 18-7034; Fax: -7039
E-mail: alfons.benzinger@siemens.com


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