PCK secured $ 370 million for the East Africa Pipeline Project.

PCK secured $ 370 million for the East Africa Pipeline Project.

2023-04-30 11:07:56

In April 2023, PCK Steel Pipe Group won the framework agreement for the procurement of LSAW steel pipes for the East African Crude Oil Pipeline (EACOP) project, beating out many famous steel pipe companies in Europe, Japan, and South Korea. The project spans 1,500 kilometers and requires 260,000 tons of steel pipes, with a total value of 370 million US dollars (equivalent to nearly 2.5 billion RMB). The project spans 1,500 kilometers and requires 260,000 tons of steel pipes, with a total cost of 370 million US dollars (equivalent to nearly 2.5 billion RMB). It will be executed in two phases, with the first phase already under contract for 80,000 tons, amounting to 130 million US dollars (equivalent to about 900 million yuan).

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PCK Zhuhai Gaolan Port Dedicated Terminal was bustling with activity

The East Africa project is being led by the French Total Energy Group.   Recently, this group of companies and China's CNOOC completed the first batch of imported liquefied natural gas using RMB settlement transactions. This was the first RMB settlement trade between China and France, which caused a stir in the international market.  PCK has successfully signed the world's longest heated crude oil pipeline project. The project will have a peak capacity of 246,000 barrels per day upon completion, greatly promoting economic development in the East African region. This is undoubtedly a major event in China and the world's energy industry, and of great economic and political significance to China in the international energy engineering market. PCK has partnered with the East Africa project, which has brought significant benefits to our company's operations. This project represents the largest single order in the history of our company. After successfully signing the contract, we received orders for more than 400,000 tons in that year, which is the highest record of orders received in the same period in our company's history.

Over the past decade, Panyu PCK Pipe Group has faced numerous external business challenges. For instance, the pipeline construction industry experienced a downturn due to low international oil prices, resulting in unprecedented difficulties for the company's operations. However, the company has never forgotten its mission to revitalize the national industry. It has consistently focused on developing its core business of steel pipes and is dedicated to making the steel pipe industry stronger and more robust. Through continuous efforts, PCK has established two steel pipe production bases in Zhuhai and Lianyungang, covering a total area of 2.55 million square meters, with a production capacity of up to 1.8 million tons. This has solidified PCK's leading position in the industry.

In recent years, PCK has achieved remarkable business results, including the completion of research and development of high-performance steel pipes with large diameters (7.5 meters), wall thicknesses (300mm), and lengths (150 meters). They have also developed a 3,500-meter deep-sea application pipe and obtained over 100 new technology patents. The new products have been certified by Kuwait Petroleum Corporation, Saudi Aramco, and France's Dardauer, and exported to over 70 countries and regions worldwide. The products have been exported to over 70 countries and regions worldwide and have been widely used in various projects, including Sinopec's new gas pipeline project, E'ancang gas pipeline, Hong Kong-Zhuhai-Macao Bridge project, and Shenzhen-Zhongshan Corridor project. The Nansha Bridge (Humen II Bridge) project, Guishan Wind Power, Huangyan Platform, Australia's Eastern Gas Pipeline, Mexico Pipeline Project, Nigeria Oil and Gas Pipeline, Mexico Gas Pipeline, UK Offshore Wind Power, Hong Kong Airport, and other important domestic and international projects have extensively utilized this technology. 

Our company has won the project for 260,000 tons of steel pipes in East Africa. This achievement is a testament to our years of hard work and highlights our strength among global steel pipe producers, as well as our recognition in the international market. Since its establishment, PCK has been a pioneer in China's LSAW pipe industry for oil and gas transportation. The company has created several industry leaders, filled technical gaps in the country, and taken the lead in realizing China's dream of replacing imports with domestically produced large-diameter LSAW pipes. With ten years of hard work, PCK has achieved great success.   Looking forward, PCK will continue to strive for excellence and create an even brighter future.