China National Petroleum Corporation (CNPC) recently announced that its wholly-owned subsidiary, PetroChina Engineering & Construction Co., Ltd., was awarded a $1.6 billion contract for the construction of a natural gas processing plant in Iraq. This is the company's second major project in the Middle East this year.

The construction contract involves a natural gas facility that will serve the Ratawi field in Iraq and will be capable of processing 320 million standard cubic feet of natural gas per day. CPECC will provide a full chain of services including engineering, procurement, supply, construction and commissioning. The project is owned by TotalEnergies and will be built over a period of 39 months.

CNPC noted that CPECC has extensive experience in the field of surface engineering of oil and gas fields, and has previously implemented a number of projects in Iraq. The signing of this agreement will help CNPC Engineering to expand the surface engineering business of onshore oil and gas fields in Iraq and the Middle East, and will have a positive impact on the company's revenue in the next 4-5 years.

On the other hand, according to local media in Iraq, this week the country launched two major industrial projects in Basra, including the "Green Hill Industrial City" and the country's largest chemical production complex. China's Tsingshan Holding Group will participate in the development of the "Green Mountain Industrial City".

Speaking at a press conference, the country's Minister of Industry and Minerals, Khalid Batar Najem, said:

Jointly developed by Tsingshan Holding Group and Iraqi General Steel Company, the Green Hill Industrial City covers an area of 2,000 dunums (about 200 hectares) and is Iraq's first modern steel and building materials industry cluster. The industrial city marks Iraq's transition to an intensive, sustainable production model that will strengthen the economy, increase production capacity and nurture a skilled workforce.

The chemical production complex will be built by the Iraqi General Petrochemical Industries Company. The plant will be able to produce 120 tonnes of caustic soda, 106 tonnes of liquid chlorine, 185 tonnes of hydrochloric acid and 150 tonnes of sodium hypochlorite per day using modern membrane technology. The facility will not only support key sectors such as oil, water treatment and manufacturing, but will also create significant jobs for Basra residents.

Since May 2023, Iraq's Ministry of Industry and Mines has launched several rounds of investment programs. Najam called on domestic and foreign businesses to seize new opportunities and pledged to fully support private sector involvement, especially in Basra, which he has dubbed the "economic capital of Iraq."(This article is from the official website of Seetao www.seetao.com. Reprinting without permission is strictly prohibited. Please indicate Seetao.com + original link when reprinting) Seetao.com Strategy Column Editor/Sun Fengjuan