Sinopec Oil Engineering and Construction Corporation, a wholly-owned subsidiary of Sinopec Oilfield Service Corporation, has been awarded a significant contract for sections of the Changchun-Shijiazhuang Natural Gas Pipeline, the company announced on Wednesday, July 30.

Valued at approximately 3.597 billion RMB (about $490 million), the winning bid represents a substantial boost for the company, accounting for roughly 4.44% of its 2024 operating revenue under Chinese accounting standards.

The pipeline project, part of the China Oil & Gas Pipeline Network Corporation's ambitious infrastructure development, encompasses Sections II, IV, and V of the Changling-Zhangjiakou pipeline segment, which extends approximately 659 kilometers (about 409 miles).

It features a complex array of construction components, including multiple pumping stations, valve chambers, challenging directional drilling operations, and various crossing projects, with Sinopec expecting the work to be completed within 487 days. 

Winning the bid underscores Sinopec Oil Engineering and Construction Corporation's established expertise in large-scale petroleum engineering and construction management, highlighting its professional technical capabilities in executing intricate energy infrastructure projects.

While the bid has been publicly announced, the formal contract between all relevant parties has not yet been executed. 

This new pipeline project will expand Sinopec’s portfolio of energy projects in China. Currently, the company is developing a 400-kilometer hydrogen pipeline from Ulanqab in Inner Mongolia to its Yanshan refinery in Beijing, with an initial capacity of 100,000 tonnes annually.

When completed, the pipeline project is expected to reduce the cost of hydrogen transport while also assisting the autonomous region in developing a complete supply chain of the hydrogen economy, from production to transportation, storage, and utilization.