en.Wedoany.com Reported - China Power has successfully secured an order for complete gas turbine units for an oilfield project in South America, with prices expected to increase by 20% to 30%. This development highlights the current tight supply-demand situation in the global gas turbine market. Driven by data center expansion and AI computing power demand, gas turbine orders are already backlogged until 2027. The global annual manufacturing capacity is only 60-70 gigawatts (GW), far below the order demand of 110 GW, leading to continuously rising prices.

By strategically investing in the upstream supply chain for core blades, China Power has effectively alleviated concerns about production expansion bottlenecks. This move holds greater strategic significance against the backdrop of manufacturing constraints for hot-section components, such as single-crystal blades.

The successful landing of the South American order not only reflects the competitiveness of Chinese enterprises in the high-end equipment sector but also indicates that the gas turbine market will continue to benefit from demand growth driven by energy transition and geopolitical factors.

Against the backdrop of global power shortages in data centers, gas turbines are experiencing a surge in demand as a reliable power solution. According to International Energy Agency (IEA) forecasts, global data center electricity demand will reach 945 TWh by 2030, more than double the 2024 level. Natural gas power generation has become the preferred solution due to advantages such as matching construction cycles and low fuel costs.

Three major overseas gas turbine manufacturers (General Electric, Siemens Energy, Mitsubishi Power) occupy about two-thirds of the global market, but they face severe order backlogs, with delivery cycles for some models extending up to 37 months. The intensifying supply-demand imbalance has led to significant price increases for equipment.

Chinese enterprises continue to make technological breakthroughs in the gas turbine sector. China's domestic gas turbine industry has made significant progress in overseas expansion. Companies with production capacity advantages and cost-effectiveness are poised to capture the spillover of overseas demand.

This order for the South American oilfield project confirms the strong demand in the global gas turbine market and the opportunities for Chinese-made equipment to expand overseas. The expected price increase aligns with industry trends.

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