China Petroleum Engineering’s pipeline construction arm has secured a second major oil and gas infrastructure contract in Iraq from French energy giant TotalEnergies in under a month, this time valued at USD 294 million.
According to a statement released yesterday by the engineering arm of China National Petroleum Corporation (CNPC), China Petroleum Pipeline Bureau Engineering will handle the full scope of engineering, procurement, supply, construction, and commissioning for the Sour Gas Pipeline project.
The newly awarded contract involves constructing pipeline infrastructure to connect Iraq’s Majnoon and West Qurna oil fields to a new gas processing facility located at the Attawi oil field. The project includes two primary pipelines measuring 114 kilometers and 83 kilometers in length, along with three additional gas export pipelines and related support facilities. Temporary acceptance of the project is expected within three years.
The Attawi gas processing plant, which will be supplied by the new pipelines, is already under construction by another unit of China Petroleum Engineering. That division secured a USD 1.6 billion contract last month for engineering, procurement, supply, construction, and funding (EPSCF) for the plant, backed by Paris-based TotalEnergies.
These back-to-back wins are anticipated to significantly bolster China Petroleum Engineering’s position in Iraq’s oil and gas sector, as well as across the wider Middle East. The deals are also expected to positively impact the Karamay-based company’s revenues and profitability over the next three to four years.
The latest contract marks China Petroleum Pipeline’s second major gas pipeline win in the region this year. In January, the Langfang-headquartered firm was awarded a USD 532 million contract for a liquefied natural gas (LNG) pipeline by ADNOC Gas Operations and Marketing in the United Arab Emirates.
Following the announcement, shares of China Petroleum Engineering [SHA:600339] rose 1.3 percent, closing at CNY 3.16 (USD 0.44) today.
