China Petroleum Engineering’s pipeline construction subsidiary has landed its second major oil and gas infrastructure project in Iraq from France’s TotalEnergies in less than a month, this time worth USD294 million.
China Petroleum Pipeline Bureau Engineering will be responsible for the engineering, procurement, supply, construction and commissioning of the Sour Gas Pipeline, the engineering arm of oil major China National Petroleum Corp. said yesterday, citing the contract award letter.
China Petroleum Pipeline will build pipelines connecting the oil fields in Majnoon and West Gulna to a new natural gas processing plant at the Attawi oil field, China Petroleum Engineering said.
The two main pipelines will be 114 kilometers and 83 km long and there will also be three additional gas export pipelines with supporting facilities. The project is expected to reach a temporary acceptance stage after three years.
The Attawi gas processing plant, which is backed by Paris-based TotalEnergies, is being built by another unit of China Petroleum Engineering, which was awarded a USD1.6 billion Engineering, Procurement, Supply, Construction and Funding contract last month.
These recent wins are expected to strengthen China Petroleum Engineering’s foothold in the oil and gas markets in Iraq and the broader Middle East and should have a positive impact on the Karamay-based company’s profit and revenue over the next three to four years.
This is also the second major natural gas pipeline project that China Petroleum Pipeline has won in the Middle East this year. In January, the Langfang-based firm also secured a USD532 million contract for a liquid natural gas pipeline with ADNOC Gas Operations and Marketing in the United Arab Emirates.
China Petroleum Engineering’s share price [SHA:600339] climbed 1.3 percent to trade at CNY3.16 (USD 0.44) today.