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 and China’s leading drill rig manufacturer HongHua Group (HK 196) 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.”

Tags: GE Energy