Shanxi drilling rig project breaks ground in Jincheng

(chinadaily.com.cn)

Updated: 2020-02-26

A groundbreaking ceremony for the first drilling rig manufacturing project to be constructed in North China's Shanxi province took place in Jincheng city on Feb 24, according to local officials. 

The first phase of the project, with a planned total investment of 100 million yuan ($14.24 million), covers an area of 50,000 square meters in Jinjiang Industrial Park in the Jincheng Economic and Technological Development Area in the city. It is expected to be completed at the end of June. 

Shanxi Gas Group, a major explorer and producer of unconventional natural gas fields, has joined forces with Cortech Drilling Equipment Co -- a leading drilling rig producer with the biggest market share in China's market -- to build the project. 

Shanxi Gas Group's officials said the project was an important part of the wider development of the province's coalbed methane resources, which will in future help meet energy demands.

They said the construction of coalbed methane equipment manufacturing facilities was an important move by Shanxi province in promoting the energy revolution and tapping into unconventional natural gas resources. 

According to the overall plan, Shanxi will build two coalbed methane equipment manufacturing plants. 

These will produce high-precision exploration equipment, directional drilling rigs and intelligent drainage systems and equipment in Taiyuan and Jincheng cities. 

Shanxi Gas Group said the drilling rig plant in Jincheng will guarantee the exploration and development of coalbed methane in Shanxi -- and was of great significance to the development of coalbed methane and utilization as an energy source in the province.