CPEC's subsidiary signs a $513 million LNG pipeline project contract in the UAE
CPEC's wholly-owned subsidiary signed a USD 513 million EPC contract for the UAE LNG transportation pipeline project with ADNOC Gas, with a construction period of 36 months. The contract execution will have a positive impact on operating revenue and profit in the next 3-4 years
According to the Zhitong Finance APP, China Petroleum Engineering (600339.SH) announced that its wholly-owned subsidiary China Petroleum Pipeline Bureau Engineering Co., Ltd. (referred to as "Pipeline Bureau Engineering Company") recently signed an EPC contract with ADNOC Gas Operations & Marketing L.L.C. (referred to as "ADNOC Gas") for the total package project of natural gas pipelines for the Bab and Bu Hasa oil fields of the Abu Dhabi National Oil Company in the United Arab Emirates (referred to as "UAE LNG Transportation Pipeline Project"). The contract amount is USD 513 million (approximately RMB 3.688 billion based on the exchange rate on the project award date).
Contract performance period: The construction period is 36 months to complete commissioning and production, reaching temporary acceptance conditions, followed by a 12-month warranty period. The performance of this contract will not have a significant impact on the company's total assets, net assets, and net profit for this year. Due to the long contract performance period, the implementation of this contract will have a certain positive impact on the company's operating income and total profit in the next 3-4 years
