Tendering for projects related to the West-to-East gas transmission venture in mainland China is expected to resume in the coming months after earlier delays brought about by Beijing’s anti-graft drive, the Hong Kong Economic Journal reported Thursday.
China Petroleum & Chemical Corp. (Sinopec) is likely to restart placing orders in the second half of this year for works related to a gas pipeline that will link Xinjiang and Guangdong provinces, the report said, citing Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (01938.HK) executive director Chen Zhaonian.
Chu Kong, which is involved in the manufacture of longitudinal welded steel pipes that are used in the gas industry, suffered a 21.7-percent decline in its mainland revenue last year due to lackluster economy and a slowdown in orders.
Orders slowed as corruption scandals involving top officials of state-owned oil companies prompted the firms to hold back their plans.
The construction of the West-East Gas Pipeline III has been delayed for over a year and many other projects for 18 months, said Chen.
As a result, Chu Kong saw its mainland sales fall to 1.31 billion yuan last year.
The company will bid for tenders related to the pipeline when firms resume their order placement later this year, Chen said, adding that he expects the initiative to help Chu Kong to improve its mainland sales.
In other comments, he said that the first phase of Chu Kong’s redevelopment project in the Panyu district of Guangzhou in Guangdong province will be completed in the fourth quarter this year, providing a total of 82,500 square meters of commercial and residential space.
This article appeared in the Hong Kong Economic Journal on April 2.
Translation by Vey Wong
[Chinese version 中文版]
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