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US sanctions against Russia may help China

By Wang Qian in Ji'nan (chinadaily.com.cn) Updated: 2014-08-01 16:43

"Compared to US and European players, Chinese companies can offer the same services at significantly lower cost, which is undeniably attractive," Zhong said.

Energy conglomerate Royal Dutch Shell Plc declared in April its preference to use more Chinese equipment for American shale gas exploration to lower production costs.

US sanctions against Russia may help China
US sanctions against Russia may help China
Chinese President Xi Jinping and Putin witnessed the signing of a $400 billion natural gas deal between China National Petroleum Corp and OAO Gazprom in Shanghai in May. Though specific terms are still under wraps, there seems to be equipment, construction and engineering services supplied by Chinese companies, recognizing the strong competitiveness of Chinese players.

"Chinese companies are keeping in line with the world's technology development. In the oilfield equipment manufacturing sector, we achieved the world's highest level, which can reliably replace US companies in the Russian market," Zhong said.

Jereh Group, the world's largest oilfield completion and second coiled tubing manufacturer, launched its Apollo 4500hhp turbine frac pump in March. Its debut not only makes China the third country to build turbine fracturing equipment, after the US and Russia, but also sets a world record of one single frac pump's highest output power, 4500hhp.

"More than 100 sets of equipment from our group now work in Russia, Kazakhstan and other CIS countries. They are all customized for the local climate condition, even below minus 40 degrees," Zhong said.

As the second-largest hydraulic fracturing country after the US, the total pressure of plunger pumps in China is up to around 3.1 million horsepower, of which Jereh Group and SJ Petroleum Machinery Co, under State-owned Sinopec Group, each takes a share of nearly 45 percent of the frac unit.

Yang Jie contributed to the story.

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