China Petroleum Engineering & Construction Corporation (CPECC) recently signed an engineering, procurement and construction contract worth 2.52 billion U.S. dollars with Russian company NIPIGAZ.
The contract involves the construction of the Amur gas processing plant (AGPP), which is one of the key projects of Russian gas giant Gazprom to secure the sales and purchase agreement for Russian gas to be supplied via the eastern route, according to the State-owned Assets Supervision and Administration Commission on Friday.
NIPIGAZ, acting as a contractor within the joint project, will prepare working documents, supply equipment and materials, and perform construction and installation activities at the AGPP, said Gazprom.
Once completed, the plant would have the annual production capacity of 42 billion cubic meters of gas, of which 38 billion cubic meters could be transported to China. This would significantly enhance the supply of clean energy in China, according to the report.
The project will be finished after five stages of construction by October 2024.
Hou Haojie, general manager of CPECC, said that the company views the AGPP project as an opportunity to further explore the market along the Belt and Road Initiative.
CPECC is affiliated to China National Petroleum Corporation (CNPC), specializing in oil engineering, manufacturing, construction and lump-sum contracting.
In May 2014, Gazprom and CNPC signed a sales and purchase agreement for gas to be supplied via the eastern route, Gazprom said.