On April 11th Moscow time, China Petroleum Engineering Construction Co., Ltd. signed the EPC contract for the second section (non patented unit) of the Amur Natural Gas Processing Plant project in Russia, with a contract amount of 2.52 billion US dollars.

The Amur Natural Gas Processing Plant project is one of the major key projects of Gazprom (Gazprom) to ensure the supply of natural gas to the East Line of the China Russia Gas Supply Agreement. After completion, the maximum annual natural gas processing capacity will reach 42 billion cubic meters, and 38 billion cubic meters of commercial gas can be produced annually to be transported to China, which is of great strategic significance for ensuring China's clean energy supply.

The project is located in Svobodne District, Amur Oblast, approximately 200 kilometers from the Black River in China. According to the contract, Engineering Construction Co., Ltd. is responsible for the construction of gas drying, purification, fractionation, and boosting stations for the second section of the project. The scope of work includes 6 natural gas processing units, totaling 18 process processing units. The project is divided into five stages of construction. The first stage will complete the temporary acceptance on March 31, 2021, and the fifth stage will have a temporary acceptance date of October 30, 2024.

In terms of oil and gas engineering construction, Russia is a relatively closed high-end market with high barriers and poor natural conditions in the region where the project is located. Russia has a prominent position and broad prospects in the "the Belt and Road" market. In order to open up the market, the company has successively established a Russian project preparation group and a project bidding leadership group, which have been persistent and closely monitored for more than two years.

The Russian side has strict requirements for the Amur natural gas processing plant project plan and cost control, and the bidding documents and quotation model have undergone more than ten modifications and upgrades. After more than ten rounds of technical and business negotiations, Engineering Construction Co., Ltd. stood out from eight well-known companies with outstanding performance in similar projects and project execution plans that meet the requirements of the owners. In addition, due to the buyer's credit model of the project, under the coordination of the group company, Chinese financial institutions will provide preferential financing solutions for Gazprom, providing important support for the smooth bidding of the project.

Hou Haojie, Executive Director and General Manager of Engineering Construction Co., Ltd., signed the contract on behalf of the company and said that the project will be executed in strict accordance with the conditions of the contract to ensure that it will be put into production on schedule, taking this opportunity to further expand the depth and breadth of the "the Belt and Road" market development.