Valves are among the most widely used and essential components in the petroleum and petrochemical industries. In the expansive valve market, selecting reliable suppliers is crucial for successful procurement. Understanding the current state of the valve industry’s development, identifying high-demand products, and recognizing emerging trends are critical to making informed procurement decisions. Companies must also seek to identify cutting-edge valves and innovative technical solutions while building a network of reliable, high-quality suppliers.
To achieve these objectives, procurement teams in the petroleum and petrochemical sectors must first understand industry demand trends, acquire comprehensive product knowledge, establish standards aligned with their development goals, and adopt a systematic, data-driven approach to supplier selection.
Grasping the "General Direction": Focusing on Industry Demand Characteristics
The oil and gas, energy, and chemical industries are the primary sectors driving valve applications. Industry reports indicate that the oil and gas sector, which includes drilling, transportation, and petrochemicals, accounts for 30.03% of global industrial valve demand—the largest share among all sectors. Valves are integral components in large-scale petrochemical processing systems. From exploration and production to pipeline transportation and refining, valves regulate the flow, pressure, and direction of oil and gas throughout the value chain. As oil and gas operations grow, petroleum and petrochemical companies are increasingly seeking advanced valve technologies. Key demand characteristics include:
Standardization and Integrated Solutions
Valves are typically purchased in large quantities by petroleum and petrochemical companies. Major corporations like China National Petroleum Corporation and Sinopec procure their valves through centralized procurement. Large-scale projects, such as the West-East Gas Pipeline, have driven demand for valves and supporting systems, while increasing energy efficiency requirements. Standardization and integrated solutions are key features of valve procurement in most petroleum and petrochemical companies. The centralized procurement model for valves is expected to evolve further, driven by continued advancements in standardization. The ongoing rollout of large-scale projects will accelerate the trend toward integrated procurement solutions.
Strong Corrosion Resistance and Long Service Life
The petrochemical industry typically operates in highly corrosive environments. For example, raw natural gas contains high concentrations of hydrogen sulfide before desulfurization. Even after desulfurization, residual hydrogen sulfide can corrode pipelines and valves during transportation. Additionally, natural gas producers have stringent requirements for valve leakage, requiring exceptional sealing performance and corrosion resistance. Corrosion is a leading cause of valve failure and critical to valve lifespan. Therefore, corrosion resistance and durability are crucial factors in valve procurement.
Large Diameter and Automation
China's oil and gas pipeline has expanded rapidly, exceeding 100,000 kilometers in total length. Future projects, such as the China-Kazakhstan Crude Oil Pipeline Phase II, the Central Asia Natural Gas Pipeline Phase II, and the China-Russia Natural Gas Pipeline, will focus on larger diameters, higher flow rates, and enhanced networking for increased capacity and efficiency. These developments will lead to two key trends in valve requirements: an increase in valve sizes and a shift toward automated control systems.
Large-diameter and dedicated valves are premium products within the industrial valve sector. These valves require stringent specifications regarding technical parameters, manufacturing processes, and materials. Most domestic companies have limited R&D capabilities, with only a few actively engaged in this specialized market.
Key industry demands—such as standardization, integrated systems, corrosion resistance, durability, large diameters, and automation—form the basis for supplier selection. When procuring valves, buyers should conduct a rigorous evaluation of key factors, including a supplier's industry position, technical expertise, and flagship products. Selecting suppliers at the forefront of innovation provides access to cutting-edge valve technologies and customized solutions.
Focusing on Specific Enterprise Procurement Needs
Transitioning from industry-wide requirements to specific enterprise needs is an ongoing refinement process aimed at achieving precise procurement goals. In addition to understanding industry trends, enterprises must evaluate suppliers based on their unique requirements and procurement challenges, while establishing strong, long-term partnerships. In the context of valve procurement within the petroleum and petrochemical industries, supplier selection should prioritize the following key factors:
Unified Standardization in Valve Procurement
Currently, most petroleum and petrochemical companies follow American Petroleum Institute (API) standards for valve procurement. While these standards provide a professional benchmark for suppliers, the diverse locations and complex operational conditions of China's petroleum and petrochemical enterprises reveal gaps in API coverage. This highlights the necessity of establishing a unified corporate standard for valve products to streamline supplier selection, reduce procurement costs, and ensure comprehensive quality control.
Developing a unified corporate standard involves two key factors:
- For valves under general conditions, companies should adhere to existing national or industry standards to identify reliable suppliers and implement centralized procurement.
- For specialized valves, companies should prioritize standardized designs by harmonizing specifications, models, materials, structures, seals, and pressure ratings to identify suppliers capable of meeting unique operational requirements.
Strengthening Quality Inspection in Valve Procurement
Valve quality control is a continuous process that begins with supplier selection, followed by thorough pre-installation inspection and testing. This process should not be postponed until after establishing a supply relationship, as is often the case in traditional procurement practices.
During supplier selection, the following quality factors should be prioritized:
- First, assess the supplier’s quality management system. The purchasing company should evaluate how well the supplier’s quality control standards align with its own requirements and examine the supplier's quality control capabilities at key stages of production and delivery.
- Second, assess the supplier’s manufacturing capabilities, particularly in the production of large or complex, dedicated valves.
- Third, assess the supplier’s quality inspection capabilities, focusing on material quality, appearance, pressure resistance, sealing, and corrosion resistance.
- Fourth, consider the supplier's delivery capacity and reputation in similar projects or applications.
Focusing on Innovation Capabilities in Valve Procurement
The growth of the petroleum and petrochemical industry has fostered innovation in valves, particularly in large-diameter valves and automation technologies. As engineering projects advance, petroleum and petrochemical companies will continue to set higher expectations, demanding new solutions and more advanced standards for valves.
This requires suppliers to conduct design verification for new products and provide feedback on standardized designs. Throughout production and manufacturing, suppliers must ensure the reliability, stability, and consistency of product quality.
Sinopec places significant emphasis on the innovation capabilities of its suppliers. Over the years, the company has focused on enhancing the stability, low-noise operation, longevity, and maintainability of its valves. It has continuously refined and introduced key valve solutions, challenging the dominance of foreign manufacturers in valve production.
Conclusion
With over 6,000 valve manufacturers in China, finding a partner that matches a company's development goals can be a complex task. Buyers should take an industry-focused approach to identify trusted suppliers, rather than relying solely on well-known brands. As competition among suppliers intensifies, the risk of making poor decisions increases. Buyers must be guided by broader industry trends, refine their procurement requirements and goals, and assess suppliers systematically to select the best partners.
