How To Take Advantage Of The Situation For The Large Enterprises In The Valve Demand Of China's West To East Gas Transmission

- Jun 02, 2020-

At present, the international equipment market has formed a monopoly competition pattern. Only by seizing the opportunity of the west east gas transmission project and relying on the vast domestic market, can Chinese enterprises accumulate necessary strength for the revitalization of the industry and expand the national equipment industry. At present, the division of the international equipment market is relatively obvious, which has formed a worldwide monopoly competition pattern. Only relying on a broad domestic market, can the domestic equipment manufacturing industry accumulate necessary strength for the revitalization of the industry.

The west east gas transmission project starts from Lunnan in Xinjiang in the West and ends in Shanghai in the East, passing through 10 provinces, cities and autonomous regions, with a total length of about 4000km, an estimated annual gas transmission capacity of 12 billion cubic meters, and a total investment of 120 billion yuan. Because the demand of the whole project for valves, instruments, automation and other related equipment is very large, the project is undoubtedly a "big cake" with attractive fragrance for the domestic equipment industry. Therefore, how to take advantage of the situation to expand the national equipment industry while increasing the localization rate of the equipment for the west to east gas transmission has become a common concern in the industry.

It is reported that China Machinery Industry Federation has organized the preparation of the feasibility analysis report on key technical equipment projects, and carried out the whole process management together with CNPC. During the use of large-scale pipeline gas compressor unit, large-scale forged and welded ball valve, automatic control system and other process station equipment, key equipment of LNG station and construction equipment such as pipe crane, China Federation of mechanical industry has done a lot of work to improve the localization rate of equipment. On December 30 last year, Lunnan Shanghai section of the west east gas transmission project was put into operation and put into commercial operation. This huge project across the East and West is not only of great significance to the development of the west, the improvement of the energy structure of the East and the strengthening of environmental protection, but also provides a rare opportunity for the development of many domestic supporting enterprises.

At the same time, China Machinery Industry Federation actively promotes the technical cooperation between Zigong High Pressure Valve Co., Ltd., Shenyang Blower Group Co., Ltd. and other domestic enterprises and the internationally famous Ge Nuovo Pignone company, and makes joint commercial quotation. It is understood that although the relevant leaders of the national development and Reform Commission and relevant departments often coordinate the localization of major equipment with the state west gas office, the efforts of all parties cannot cover up the problems faced by the equipment localization in the west east gas transmission project. As early as the middle of July 2000, the west east gas transmission project was opened to the outside world in an all-round way, including: the whole line of the project was open to the outside world and comprehensive foreign cooperation; the west east gas transmission pipeline project was not solely owned by the state, and the foreign party could hold the majority of shares, with no limit on the proportion; the mode of cooperation was not limited, and could be joint venture, cooperation or other forms. In addition, there are two special policies for investment in this project: first, the foreign side of the west east gas pipeline project can hold the majority of shares; second, the construction of urban natural gas pipeline network is included in the scope of cooperation for opening up, the exploration right and mining right use fee is reduced, and the imported equipment is exempt from tax. These two policies have broken through the restrictions of urban gas supply pipeline construction that is not open to the outside world in the catalogue of guiding industries for foreign investment.

While feeling the competitive pressure of foreign companies, many equipment manufacturing enterprises are also treated unfairly in domestic project bidding. Although the relevant departments of the state have pointed out for many times that the domestic major project construction should consider the use of domestic equipment as much as possible, and the localization rate has been stipulated, however, there is a general phenomenon that many domestic projects are more tolerant to foreign enterprises when purchasing equipment, and more strict or even difficult to domestic enterprises.

Industry analysts believe that this is mainly due to the weak strength of domestic equipment manufacturing enterprises themselves. In some ways, if you buy domestic equipment, you should be responsible for any problems; if you buy foreign equipment, you feel safer. The reason is that the foreign equipment is relatively advanced. If it fails, it can only be attributed to the lack of technical research and development. Therefore, in order to improve the competitiveness of domestic enterprises, it is also necessary for the state to provide effective credit support to major technology and equipment manufacturing enterprises, in accordance with the international practice in different periods. Both developed and newly industrialized countries give full support to the major equipment manufacturing industry in terms of Finance and taxation. China needs to share the risk of the owner of the first domestic complete set of equipment scientifically, so that the newly developed domestic complete set of equipment can enter the market.

It is understood that the domestic equipment industry has many problems in the bidding of the west to east gas transmission project. Taking the bidding process of pipeline compressor as an example, because domestic enterprises do not know enough about the gas transmission process, they can only make the design scheme after the user and Design Institute have clear parameters; while several compressor companies bidding abroad can even give lectures to Chinese users, telling them how many compression stations should be placed on the 4000 km pipeline and how to determine parameters. In contrast, domestic enterprises have lost the initiative. CNPC officials said that on the premise of ensuring the quality of the project, as long as the construction requirements are met, it is natural to "try to use domestic materials and equipment as much as possible". However, relevant data show that at least 8 of the 16 major equipment in the west east gas transmission project need to be imported just because of the gap between domestic and foreign enterprises' technical capabilities. It is gratifying that in the west to east gas transmission project, due to the presence of companies such as Shen Gu, etc. in the key technology design