Ahead of a gala dinner to celebrate 70 years of the China-Britain Business Council, FOCUS speaks to companies that have experienced outstanding success in the Chinese market over the last seven decades
In the first instalment of this new series, FOCUS talks to leading energy technology company Baker Hughes about its commitment to revolutionising energy in China, the UK and beyond.
How and when did Baker Hughes enter the China market and what major successes and growth have you had during this time?
We started cooperation with China when Deng Xiaoping visited the Baker Hughes drill bit R&D centre in Houston in 1979 during his visit to the United States and took the most advanced drill bit (J44) to China.
In the nearly 45 years since then, we have been committed to the development of China’s energy industry. We have provided more than 150 compression systems for the China West-East Gas Transmission Pipeline project, which are running well so far. We have also participated in more than 20% of China’s shale gas exploration and development. Finally, we have in-depth cooperation with domestic Chinese companies as part of Belt and Road Initiative projects.
How is Baker Hughes contributing to the energy transition, both globally and in China?
As the pace of the global energy transition continues to accelerate, we have solidified our dual approach to implementing efficiency measures today and investing in new energy solutions for the future. We began to increase investment and deployment of related technologies in 2019 to balance the energy trilemma (energy affordability, security, and sustainability) and the challenge of energy efficiency and low-carbon energy utilisation, and ultimately achieve carbon neutrality.
We have expertise and specialist technologies to maximise energy supply whilst also reducing emissions. In addition to our company heritage in conventional oil and gas, we have been involved in carbon capture, utilisation and storage (CCUS) for more than a decade, including in some of the world’s largest offshore CCUS projects.
Our Subsea Centre of Excellence in Montrose, Scotland, for example, does not only manufacture equipment for the offshore UK and global oil and gas sector but has also manufactured subsea trees used in large-scale CCUS projects. Similarly, we have decades of experience in hydrogen technology, with more than 2,000 Baker Hughes hydrogen compressors currently in service globally.
From our perspective, driving and developing CCUS and hydrogen in China are one of the biggest focuses in our long-range playbook.
We are committed to continuously providing technical support for China’s energy needs, applying the most advanced low-carbon technology to achieve China’s dual carbon goals, and becoming the most reliable partner for China’s energy security and the most important technology leader in achieving the goal of carbon neutrality.
What is Baker Hughes’s involvement in the UK market?
Baker Hughes has a significant presence across the UK. Our 5,500 employees work at more than 30 sites nationwide, including in Aberdeen, Bristol, Leicester, Montrose and Newcastle. These operations support a network of over 3,000 UK suppliers, with whom we spend over £300 million annually.
We are the only large original equipment manufacturer (OEM) remaining in the UK for subsea energy production systems. Most of the products we manufacture in the UK are exported, including many large-scale infrastructure projects in the energy and oil and gas industries, as well as automation and digitalisation projects in China. During our 45 years of collaborating with three national oil companies and other state-owned enterprises in China, technologies and services from the UK have played a vital role in supporting our projects’ successes.
How have you worked with CBBC during your development in China?
Baker Hughes attaches great importance to the stable development of China-British trade. We became a premium member of CBBC in 2021 and have since relied on CBBC’s advantages in promoting China-British relations to help enhance Baker Hughes’ growth opportunities in the Chinese market. CBBC’s important role in helping shape bilateral relations between the UK and China through its close links to the UK Government and the devolved administrations, the Chinese Government, and the British and Chinese Embassies have been of great value to Baker Hughes and helped us to deliver more successes and business growth in China.
What are your ambitions and plans for the future in China?
Our strategy framework is focused on transforming our core to strengthen our competitiveness today, while investing for growth and positioning for new frontiers in the energy transition. Through this framework, Baker Hughes will build and execute the plan to deliver sustainable value for our shareholders and stakeholders in China and beyond.
Book Your Ticket丨CBBC 70th Anniversary Gala Dinner
CBBC has been at the heart of the UK-China relationship for 70 years, and the organisation is proud to mark this anniversary at a time when UK-China trade has exceeded £100 billion. In the future, CBBC will continue to support its members and the wider UK business community’s success in China, as well as Chinese companies expanding and investing in the UK.
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