Honghua Group participates in the 2019 OTC with world's first all-electric shale gas solution

CHENGDU,China,May 17,2019 -- From May 6 to 9 (US time),the world's largest and most professional oil & gas equipment technology exhibition,Offshore Technology Conference (OTC),was held in Houston,USA. At this exhibition,Honghua exhibitedits all-electric shale gas solutions and automated pipe handling systems with two pipe high-speed rigs,including the world's most powerful 6000HP electric fracturing pump. The innovative technology products attracted many old and new customers including NABORS and Schlumberger to visit and discuss the long-term strategic cooperation in all aspects.

Honghua all-electric shale gas solution,with the concept of "network first,gas-consumed,gas-electricity combined,flowing operation,and factory production",is based on the experience of highly developed shale gas in the United States,which is also the situation in China,and makesfull use of the characteristics of shale layer,with the application of Honghua innovation of research and development technology in equipment manufacturing,equipped withintelligent drilling rigs and all-electric fracturing equipment. Compared withthe traditional solution,Honghua all-electric shale gas solution hasgreater advantagessuch asinvestment of fixed assets decreased by more than 30%,footprint of rig site decreased by 30%-65%,personnel operators reduced by 40%-50%,fuel cost reduced by 40%-60%,and fracturing operation cost reduced by 30%.The solutioncan achieve zero emission,low noise,and continuous operation day and night.This is in line with the current development concept of"energy saving,environmental protection,cost reduction and efficiency improvement."

This solution hasthe world's largest single-machine VFD fracturing system,the 6000HP electric control fracturing system. The system uses a 6000V medium voltage variable frequency drive and a patented motor direct drive transmission structure to achieve precise displacement and pump pressure control,effectively reducing the energy consumption,maintenance and labor costs required for pump operation. The transmission,reliability and working efficiency are allgreatly increased due to the absence of a diesel engine,transmission and clutch,which have to be used in a traditional fracturing truck setup.

Honghua all-electric shale gas solution has beenin use in USA since 2013.Thesystem has successfully completed lots of operations in China and US shale gas development sites,and has been praised by users. It is China's first electric fracturing systemto besuccessfully applied in industrial applications and achieve highsales.