Sinopec subsidiary lands $424m Kazakh pipeline project

China Petroleum Engineering Corp (CPEEC) announced its wholly-owned subsidiary, China Petroleum Pipeline Engineering Co. Ltd. (CPP Engineering), and its subsidiary CPPE (Kazakhstan) Ltd., have received an award letter for the Ethane Propane Trunk Pipeline EPC project in Atyrau Province, Kazakhstan. The project, awarded by KMG PetroChem, has an estimated contract value of $424 million.

The project's scope includes the construction of 211.17 kilometers of ethane pipeline and 218.7 kilometers of propane pipeline. The planned construction period to achieve pre-acceptance is 36 months from the notice to proceed. CPP Engineering, as the lead of the consortium, along with CPPE (Kazakhstan) Ltd., will be responsible for project design, some equipment and material procurement, logistics, and commissioning.

This award is expected to positively impact CPEEC's operating revenue and net profit over the next 3-4 years, solidifying its presence in the oil and gas storage and transportation engineering market in Kazakhstan and Central Asia. The company cautions that the project is in the pre-signing phase, and final contract terms are subject to formal contract signing.