Japan-based industrial firm expanding reach within US oil and gas market.
Japan-based Mitsubishi Heavy Industries (MHI), is bullish about its growth potential in the U.S. oil and gas space. In fact, the large industrial firm anticipates expanding the scale of its U.S. business by 20 percent over the next 2 years – particularly in compressor- and gas turbine-reliant segments such as floating production, liquefied natural gas (LNG), plant modularization, carbon dioxide (CO2)-enhanced oil recovery, gas processing and petrochemicals.
In late January, MHI announced that it had formed a dedicated Oil & Gas Division within its Houston-based subsidiary Mitsubishi Heavy Industries America, Inc. (MHIA), supported by a 180,000-square foot manufacturing and service facility in nearby Pearland that opened in 2015. According to a company executive, the new division will shorten the supply chain for U.S.-based oil and gas clients.
Vice President, Business Development, MHIA Oil & Gas Division
"First and foremost, we will provide customers with a one-stop sourcing solution based in Houston," Michael Sicker, business development vice president with MHIA's Oil & Gas Division, told Rigzone. "We will also be able to provide our customers with local service and after-market support through our facilities throughout the U.S. Longer-term, we aim to bring those same manufacturing capabilities to the U.S. and provide full project execution in the States."
For more on MHIA's plans for its new Houston-based division, including prospects for developing new technologies in Texas as well as potential employment implications, keep reading.
Rigzone: What is the extent of MHI's oil and gas business in North America now?
Michael Sicker: The U.S. subsidiaries of Mitsubishi Heavy Industries Compressor Corp. and Mitsubishi Hitachi Power Systems, Ltd. have enjoyed significant growth in their respective markets over the past 4 to 5 years. And with the introduction of the two-shaft H-100 industrial gas turbine to the oil and gas sector, we now offer a significant value proposition for gas turbine-driven compression in the oil and gas sector.
Rigzone: How will the new Houston-based oil and gas division allow MHI to expand its reach in the North American upstream, LNG and downstream markets?
Rigzone: What do you consider the most compelling growth opportunities in North America's upstream, LNG and downstream?
Mitsubishi Heavy Industries Compressor Corp.'s (MCO-I) Pearland Works facility near Houston. SOURCE: Mitsubishi Heavy Industries America, Inc.
Rigzone: In MHI's statement announcing the U.S. expansion, MHI President and CEO Shunichi Miyanaga noted that technologies "honed in Japan" will now be available to U.S. customers locally. In the context of upstream, LNG and downstream, what are some key examples of these technologies?
Rigzone: What are some opportunities that MHI sees for new technology development in the upstream, LNG and downstream markets?
Rigzone: Given its new Oil & Gas Division, is MHIA adding to its Houston-based headcount? If so, which types of jobs are you recruiting for?
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