CHINA’S Petroleum Pipeline Bureau and China Petroleum Engineering & Construction, both subsidiaries of state-owned China National Petroleum Corp, have signed an agreement to build the Habshan-Fujairah crude pipeline in the UAE. CPECC focuses on international oil and gas infrastructure construction, while the Pipeline Bureau focuses on construction of oil and gas pipelines, both domestically and internationally.
"It will be a good match for the two companies to join hands in the UAE project, which paves a new way for CNPC to enter the high-standard international oil and gas infrastructure-building market," CNPC said.
The 360-km long crude oil pipeline will run from the Habshan oilfield in the mid-north of the UAE to the port of Fujairah in the NE of the country. The pipeline is expected to have a capacity of 1.5m brl/d. Financed by International Petroleum Investment Co, the Abu Dhabi state oil investment arm, the pipeline's construction is scheduled to start later this year.
The UAE has quadrupled its infrastructure investment since 2003 to more
than $200 billion in 2006, and it is understood that the country plans to invest $700 billion in the oil and gas sector, infrastructure, and real estate. "That could mean a lot
more investment opportunities in the UAE for international companies," an oil
industry source said.