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Good response to CIPPE expo

By Si Tingting (China Daily)
Updated: 2009-03-20 07:54

The three-day flagship oil equipment fair, that began yesterday, has been drawing substantial crowds and garnered 30 percent more attendance this year.

The global financial crisis and low international oil prices have dampened many oil producers' enthusiasm to invest in upstream exploration and many refiners are in the red.

This year a record number of 800 exhibitors from 35 countries and regions are participating in the Ninth China International Petroleum & Petrochemical Technology and Equipment Exhibition (CIPPE), said Gao Shan, member, organizing committee.

The buzz at the meet undoubtedly was the nation's 4-trillion-yuan stimulus package and its plans to revive the 10 pillar industries.

The stimulus plans cover at least two sectors - the petrochemical and machinery manufacturing industries - which are of concern to oil equipment manufactures.

Under the stimulus plan for the machinery manufacturing industry, Chinese enterprises are encouraged to raise competitiveness by incorporating technological innovation, particularly the independent production of components used for major equipment.

The stimulus plan for the petrochemical industries aims to boost domestic demand for oil and petrochemical products.

China's three biggest oil producers, namely PetroChina, China Petroleum and Chemical Corp (Sinopec) and China National Offshore Oil Corporation (CNOOC), have been increasing its investment in the domestic and overseas upstream exploration operations, and the recently initiated construction of the second west-east natural gas pipeline requires large amount of pipes, said Zhang Guanjun, deputy general manager, China Petroleum Equipment Manufacturing Branch Company.

"All of this means more opportunities for China's oil drilling equipment and pipeline makers, " said Zhang.

(For more biz stories, please visit Industries)