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In recent years, Jinan Diesel Engine Co., Ltd. (000617), a leading manufacturer in the industry, has developed a diesel/natural gas dual-fuel engine and its corresponding generator set specifically designed for oil drilling power. This innovative product has consistently maintained a high new product contribution rate and has recently been officially recognized by the China Petroleum System Expert Group.
The project marks a significant breakthrough as it fills the gap in high-power dual-fuel engines for drilling applications above 1000KW, both domestically and internationally. With global energy demand on the rise and the energy crisis intensifying, natural gas has emerged as a promising clean alternative fuel due to its abundant reserves and environmental benefits. It plays a key role in balancing energy consumption, promoting energy efficiency, and meeting environmental protection standards.
As the petroleum industry continues to evolve and drilling equipment becomes more advanced, the contradiction between energy shortages and rising drilling costs has become increasingly evident. According to statistics, fuel consumption in drilling machinery accounts for over 20% of total drilling costs. Drilling operations are often located in remote areas where transporting diesel is challenging, while many oil fields have access to natural gas at little to no cost. With minimal treatment, natural gas can be efficiently used to power engines, making it an attractive and economical option.
This has created a strong demand for diesel/natural gas dual-fuel engines tailored for oil drilling rigs. By utilizing local natural gas resources instead of diesel, oil companies can significantly reduce their operational costs and achieve greater economic returns.
It is reported that the Zhongshi system will gradually replace existing diesel engines with dual-fuel engines in suitable rigs, aiming to cut drilling costs substantially. Once the technology is stable, mature, and reliable, it will be expanded into the international drilling rig power market. Beyond oil drilling, these dual-fuel engines also hold great potential for fixed power generation, natural gas gathering, and compression systems in China’s energy infrastructure.
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