China Petroleum Engineering unit inks $424m Kazakh pipeline EPC deal

China Petroleum Engineering Co. (CPE) announced that its wholly-owned subsidiaries, China Petroleum Pipeline Engineering Co. and CPPE (Kazakhstan), as part of a consortium with CITIC Construction Co., have signed an EPC contract with KMG PetroChem. The contract is for the Atyrau Province Ethane-Propane Trunk Pipeline Project in Kazakhstan.

Valued at $424 million, the contract covers the construction of ethane and propane pipelines of various diameters and lengths. The project's estimated construction period is 36 months from the notice to proceed, followed by a 36-month quality guarantee period.

While the contract's fulfillment is not expected to materially impact CPE's current year's assets, net assets, or net profit, it is anticipated to positively influence the company's operating revenue and net profit over the next 3-4 years. CPE highlighted that its pipeline engineering subsidiary has extensive experience in oil and gas storage and transportation engineering, particularly in Kazakhstan and Central Asia.