In recent years, Shandong Jinan Diesel Engine Co., Ltd. has developed diesel and natural gas dual-fuel engines and their generator sets for oil drilling power, consistently maintaining a high new product contribution rate. These technologies have recently been recognized by the China Petroleum System Expert Group. This project marks a significant breakthrough, as it fills the gap in high-power dual-fuel engines for drilling applications above 1000kW, both domestically and internationally. According to industry data, fuel consumption for drilling machinery accounts for over 20% of total drilling costs. Oil drilling typically takes place in remote locations where transportation is challenging, making it difficult to supply diesel fuel. However, many oil fields already have access to natural gas, which is nearly cost-free and only requires minimal processing to be used in engines. This makes the development of diesel and natural gas dual-fuel engines for drilling rigs an urgent and practical solution. By utilizing the abundant natural gas resources found in oil fields, instead of relying on diesel, it becomes a highly effective strategy to cut down drilling costs and maximize economic returns. It is reported that all units under PetroChina will gradually transition to using natural gas engines where applicable, replacing traditional diesel engines with dual-fuel alternatives to achieve substantial cost reductions. The technology behind these dual-fuel engines is stable, mature, and reliable, positioning it well for further expansion into the international drilling rig power market. Beyond their primary use in gas-rich oil fields, these engines can also serve as new power solutions for fixed power generation, natural gas gathering systems, and compression equipment across various industrial sectors in China.

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October 02, 2025