Shale gas to spark equipment boom
Updated: 2013-03-20 00:09
By DU JUAN (China Daily)
China's shale gas development plan has also attracted foreign equipment manufacturing companies besides oil and gas developer Royal Dutch Shell Plc, which has cooperated with Chinese companies for upstream exploration.
Caterpillar Inc, the world's biggest heavy machinery maker, has developed a new type of engine used for fracturing equipment in China's shale gas blocks, said Felix Toh, regional manager of sales and marketing department of Caterpillar's Global Petroleum Asia Pacific.
"We are trying to get closer to our customers," he said.
Although China's shale gas market is attractive to both foreign and domestic investors, many industrial experts said there is still a long way to go before the industry becomes mature.
"It is a trend to invest in and develop equipment for shale gas exploration among manufacturing companies, but the potential of the market depends on major exploration companies — Sinopec and PetroChina Co's technology development in the following years," said Xiao Shaosong, vice-president of Shengli Oilfield Highland Petroleum Equipment Co, China's biggest private incorporated comprehensive petroleum equipment provider by market value.
It realized total profits of 20 million yuan in 2012, and 40 percent of its products were exported.
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