HONG KONG, Nov. 12, 2018 /PRNewswire/ -- Honghua Group Ltd ("Honghua" or the "Group") (Stock Code: 196.HK), a leading global land drilling rig manufacturer, is pleased to announce that so far in 2018, Honghua has sold 57 sets of flexible water tanks exclusively developed by the Group, which gained positive market feedback. The flexible water tank is independently developed by Honghua; it is the first such product in the world and an important part of the company's overall shale gas solutions. The product's patent was awarded the "Outstanding Innovation Award" by the Polish Oil and Gas Exhibition and Technology Symposium and was sold in China as well as the U.S. markets.
Compared to ordinary water tanks, flexible water tanks can be folded during transportation, which means it can be delivered in less batches and saves the cost of construction work; less pipeline connections are designed to increase the reliability of flexible water tanks and to speed up the installation process. Users can remotely and centrally monitor the fluid level, which greatly improves the efficiency of use. The flexible water tank has a single tank capacity of up to 320m3, while the ordinary water tank's capacity is only 45m3. Besides, the overall footprint of flexible water tanks is only 1/3 of that of ordinary water tanks. In addition to the significant increase of volume, land resources are also greatly saved with remarkable long-term comprehensive economic benefits, which greatly reduces operating costs for users.
The development of shale gas is of great significance for China to achieve energy independence and autonomy, and the market demand for natural gas is increasing. According to the "Shale Gas Development Plan (2016-2020)" issued by the National Energy Administration of China, China will strive to achieve 30 billion cubic meters of shale gas production in 2020. This provides a driving force for the continuous development of shale gas. Since 2013, Honghua has sold 149 sets of flexible water tanks domestically, providing strong support for the development of shale gas. In 2018, Honghua's 210m3 flexible water tank was listed as the preferred product by customers in standardized configuration of fracturing equipment. It has laid a solid foundation for the future sales of Honghua's flexible water tanks.
Honghua's management commented, "the development of flexible water tanks is significant to the company's expansion of the shale gas market. Under the guidance of the overall solution for shale gas development and the concept of 'Supported by distribution network; exploiting gas by using gas; simultaneously producing gas and electricity; assembly line manufacturing; industrial development,' through joint research and innovation with underground drilling operations companies, flexible water tank products have achieved great success.
About Honghua Group Limited (Stock Code: 196.HK)
As one of the leading land drilling equipment manufacturers in the world and the largest land drilling rig exporter in PRC. Honghua is primarily engaged in manufacturing conventional land drilling rigs, digital drilling rigs, accessories of drilling rigs, as well as the parts and components for the drilling rigs or for the maintenance of the drilling rigs in operation. Leveraging on the strong R&D strength, high-quality production facilities and mature international sales network, Honghua's 80% products have been sold to a large number of famous enterprises all over the world, including major oil-production regions such as North America, Middle East, and emerging markets including South America, India, Russia, China and Africa. Based on the existing solid foundation of the drilling rigs equipment, Honghua will implement diverse development strategies, and expand to become the integrated enterprise which is involved in the interaction development of three major sectors, including onshore and offshore areas, equipment manufacturing and oil and gas resources development (especially the unconventional oil and gas area), as well as the engineering services. In the future, Honghua and CASIC will have in-depth cooperation in advanced energy equipment manufacturing and oil & gas field services field and achieve synergy in R&D, project execution and market expansion, to become an international leading combining equipment manufacturing provider in oil & gas industry.
