Shandong Province will focus on building five major shale gas equipment-manufacturing bases, in Qingdao, Dongying, Yantai, Weifang and Dezhou.

Qingdao has a good foundation for the development of the shale gas equipment industry, and will accelerate the construction of the project and form a large-scale production capacity.

At the same time, the provincial government is determined to make and carry out beneficial policies on land arrangement, financing, taxation, etc.

Qingdao possesses three advantages. Some enterprises have already entered this field. Relevant research on shale gas has also been conducted. With the support of Shandong province, the China University of Petroleum will work with corporations to strengthen the development, design, and manufacturing of equipment. Qingdao is also endowed with a marine oil and gas engineering equipment manufacturing base, which is located in Haixi Bay.

Currently, China faces two major challenges in this industry. One is the American monopoly on the technology for shale gas equipment. The other is the urgent need to boost the production of equipments,in order to secure the smooth implementation of the state’s shale gas strategy.