With China seeking to boost its production of unconventional gas
supplies to meet Asia’s growing energy needs, GE Power & Water’s Distributed
Power business (NYSE: GE) and China’s leading drill rig manufacturer
HongHua Group (HK 196) today signed a three-year agreement for GE to
supply its Waukesha VHP gas engines that will power drill rigs used in
new shale gas projects in China. The announcement was made at the
Offshore Technology Conference being held in Houston.
In recent years, GE’s gas engine factory in Waukesha, Wisconsin, has
seen orders steadily increase as more countries seek to develop their
domestic natural gas resources to increase their local energy
independence.
“GE’s proven Waukesha gas engines have earned industry-wide recognition
for their high levels of efficiency and reliability in powering
successful shale gas projects in the United States,” said Zhang Mi,
chairman and president of Honghua Group. “Our agreement with GE
strengthens our ability to sell more drill rigs by offering them
Waukesha gas engines as a more cost effective on-site power solution.”
For GE, the agreement with HongHua—which also is the world’s second
largest drill rig supplier—illustrates GE’s successful strategy to
collaborate with local companies in China’s oil and gas sector in
support of the country’s efforts to diversify its energy supplies.
“Our agreement with HongHua strengthens our position as a leading gas
engine supplier for drill rigs in Asia as GE continues to expand its
role in the global unconventional gas sector in China and other key
markets around the world,” said Darryl Wilson, vice president and chief
commercial officer of GE’s Distributed Power business. “Our Waukesha gas
engine technology is an important part of GE’s Unconventional Solutions
portfolio of products that benefit critical segments of the gas value
chain.”
The Waukesha gas engines will be fueled by on-site field gas or with
commercial grade gas to generate 2.8 to 3 megawatts of on-site power. By
utilizing this field gas, drill rig operators will be able reduce their
fuel transportation costs and optimize the availability of the rigs.
With Waukesha gas-powered engines, users have the option to run almost
any gaseous fuel from 950–2600 BTU. That includes everything from hot
field gases, commercial grade gas, LNG, CNG and up to HD-5 propane.
GE plans to begin shipping the Waukesha units to China in May 2014, and
the first pilot rig is scheduled to begin operation in September 2014.
Typical drill rigs use three diesel engines for power. GE’s Waukesha gas
engines can help drill rig operators achieve significant improvements in
operating efficiency and lower greenhouse gas emissions by switching
from conventional diesel to cleaner-burning natural gas. For example,
the utilization of gas-fired engines at gas extraction sites can save
drilling operators as much as 80 percent in fuel costs compared to
diesel (calculation is based on natural gas at $3/mcf and diesel at
$2.65/gallon). Additionally, NOx emissions can be reduced by
as much as 95 percent when powered by GE’s Waukesha VHP 7044GSI or a GE
Jenbacher J320 gas engine running on 100 percent natural gas compared to
a typical diesel engine.
GE Power & Water’s Distributed Power is a leading provider of power
equipment, engines and services, focused on power generation at or near
the point of use. Distributed Power’s product portfolio includes GE’s
aeroderivative gas turbines and Jenbacher and Waukesha gas engines,
which generate 100 kilowatts to 100 MW of power for numerous industries
globally. Headquartered in Cincinnati, Ohio, Distributed Power employs
about 5,000 people around the world.
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About GE
GE (NYSE: GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in
energy, health and home, transportation and finance. Building, powering,
moving and curing the world. Not just imagining. Doing. GE works. For
more information, visit the company's website at www.ge.com.
About GE Power & Water
GE Power & Water provides customers with a broad array of power
generation, energy delivery and water process technologies to solve
their challenges locally. Power & Water works in all areas of the energy
industry including renewable resources such as wind and solar, biogas
and alternative fuels; and coal, oil, natural gas and nuclear energy.
The business also develops advanced technologies to help solve the
world’s most complex challenges related to water availability and
quality. Power & Water’s six business units include Distributed Power,
Nuclear Energy, Power Generation Products, Power Generation Services,
Renewable Energy and Water & Process Technologies. Headquartered in
Schenectady, N.Y., Power & Water is GE’s largest industrial business.
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Copyright Business Wire 2014