Capstone Turbine Secures Substantial Order for Mexican Pipeline Project

Capstone Turbine Corporation (www.capstoneturbine.com)

, the world's leading clean technology manufacturer of microturbine energy systems, announced today that it received an order for six C800 microturbines and sixteen C30 microturbines for the second phase of the Los Ramones pipeline project in Eastern Mexico. Industrias Energetícas, Capstone's distributor in Mexico, secured the order, which is one of the largest in Capstone's history. The pipeline project is a part of the Mexican Energy Reform, which was established as a way to reduce electricity and gas prices in the country over a span of two years. The Energy Reform will also expedite natural gas production, from 5,700 million cubic feet a day (Mcf/d) in 2013 to 8,000 Mcf/d in 2018 and 10,400 Mcf/d in 2025. The entire project will cost US $2.5 billion and carry natural gas over a distance of 1,021 kilometers, supplying one-third of Mexico's natural gas needs at a much lower cost than that which is currently being shipped in liquefied form from the Middle East, Africa and South America. Six C800 high-pressure natural gas microturbines will be installed at two compression stations of the pipeline project and sixteen C30 microturbines at metering stations in between. The microturbine systems will all operate in stand-alone mode, acting as the primary source of power at each location. Capstone microturbines are ideal for pipeline applications because there is no need for lubricants or coolants and they require minimal maintenance. This ensures around the clock availability and uptime, ensuring the flow of gas to the market will not be interrupted. Remote sites like these benefit from highly reliable and proven technology without the cost of extending the local power grid. Capstone microturbines are also extremely efficient and clean, ensuring the pipeline project is compliant with current and future emissions regulations. "Natural gas demand in Mexico has increased at a rate of 5.7 percent and 5.9 percent in the Midwestern region, so there was an immediate need for a natural gas power production system to support the Los Ramones pipeline project," said Juan Carlos Hernandez, President of Industrias Energetícas. "Capstone microturbines were chosen for their low maintenance, reliability, and proven track record in the oil and gas industry worldwide." "Capstone microturbines can be used in all facets of the natural gas market, including exploration, production, compression, and transmission," said Darren Jamison, President and Chief Executive Officer at Capstone Turbine. "This order is one of the biggest in Capstone history and demonstrates the larger project opportunities that we have been chasing. We are fully committed to provide the solutions needed to support these larger load regime projects," added Jamison.