Liddell targets energy contracts in China

22 Jan 2002

China’s rapidly expanding energy sector offers UK, and particularly Scottish, firms a tremendous opportunity to win major contracts and dramatically increase the exports of our oil and gas goods and services, Scottish Secretary Helen Liddell said today.

Opening the Society of British Gas Industries (SBGI) Natural Gas seminar in Guangzhou Mrs Liddell said:

"We are at a very exciting stage in the development of China’s natural gas industry and the Government is determined to do all it can to help UK firms to compete for, and win, the multi-million pound contracts that are associated with developments in the energy market.

"China is not only the world’s most populous country, but the second largest energy consumer in the world. The economy is growing rapidly and there is a sharp increase in energy demand.

"China has embarked on a major expansion of its gas infrastructure and the use of natural gas for energy purposes is expected to more than triple by 2010. This will require major conversion to natural gas from existing fuel supplies and installation of new equipment and technology.

"The UK did this when we converted from town gas to the North Sea natural gas supplies. As a result I believe that the UK sustains a leading edge position regarding best practice, design, technological development and the management of natural gas.

"The Government has committed itself to assist and collaborate with China in many aspects of developing a natural gas market. I believe that the promotion of joint ventures to fill identified capability gaps in China is a vital link to enable more activity between Chinese and UK business.

"UK and Scottish companies have built up tremendous knowledge and expertise from operating in the North Sea. Employment associated with the North Sea oil and gas industry supports 300,000 jobs in the UK, 44 per cent of which are in Scotland, representing 7 per cent of total Scots employment.

"The PILOT initiative has been created to ensure that these jobs are not lost as the North Sea production decreases. Trade partners UK are committed to optimising the creation of new exports to assist PILOT and the utilisation of gas for commercial and domestic purposes is a completely new area of development in China. This holds tremendous export potential for the UK and Scotland is well placed to take advantage of this opportunity.

"Advantica Technologies for example, which has just signed its first contract with PetroChina to carry out risk assessment for the West-East pipeline, are confident that they will win further business, some of which will be carried out using Advantica's Scottish staff.

"Companies like; Shell, BP, Rolls Royce and UK based contracting companies like Bechtel and Foster Wheeler are already actively involved in the Chinese energy market working on projects worth over 11 billion dollars.

"I am determined that UK and in particular Scottish companies, like Gas Measurement Instruments Ltd who are represented here today, receive all the support and encouragement they need from Government to help them win export orders which will create and sustain jobs in Britain."

NOTES FOR NEWS EDITORS

  1. Mrs Liddell’s is the latest in a series of visits made by the Prime Minister and UK Government Ministers to China to promote trade links and co-operation in the field of energy production and supply.
  2. UK companies involved in the SBGI Gas Seminar include;
  • Advantica Technologies Ltd, which has offices in Aberdeen and Edinburgh, is a premier provider of advanced technology and systems solutions.
  • Sperryn Gas Controls, who are leading manufacturers of controls and components for the gas industry.
  • Fusion Group, who specialise in the supply and manufacture of polyethylene jointing systems and are, in co-operation with Hong Kong and China Gas building an electrofusion manufacturing facility in Shenzen.
  • CORGI, the UK national body for gas safety.
  • Gas Measurement Instruments Ltd, who produce detection systems from their plant at Renfrew in Scotland.

Also involved is world-class international engineering and construction group, Kvaerner.

3. PILOT is the joint Industry and Government forum for the offshore sector.