SCOTTISH engineering company Weir Group has teamed up with a Far East firm to provide high-pressure well-service pumps and related flow-control equipment to China’s developing shale gas industry.
Weir’s joint-venture with Shengli Oilfield Highland Petroleum Equipment Company (Highland) is expected to be up and running in the first half of next year, subject to regulatory approvals.
It will be owned 60% by Glasgow-based Weir and 40% by Highland, and be based in Dongying, Shandong Province, China.
The business is expected to build on the success achieved by Weir SPM, a manufacturer of specialised products for the oil and gas market, which has benefited from the development of shale gas production in North America.
Weir chief executive Keith Cochrane said yesterday the move was a great opportunity for Weir SPM to apply its expertise in well-service pumps and flow-control equipment to the accelerating Chinese unconventional gas market.
He added: “Our partnership with Highland, with its extensive customer relationships and market knowledge, will be a key enabler for production from China’s shale gas reserves.”
Highland chairman Yang Xianping said: “We are delighted to be working with Weir and excited by the opportunity to be associated with the Weir SPM technology and brand, renowned globally in the oil and gas arena.”
Weir anticipates investing £3.9million in the joint-venture during its first two years of operation.
Shale gas is an unconventional source of natural gas, released from rock formations by hydraulic fracturing – a technology centred on specialised pumps.