In the first half of 2026, China's oil pipelines going global are undergoing a structural upgrade. According to data from the General Administration of Customs, the cumulative export of steel pipes in China from January to July was 6.7417 million tons, an increase of only 0.25% year-on-year. However, the export of seamless pipes for oil and gas was about 2.05 million tons, accounting for 62% of the seamless pipe export volume. At the same time, the newly signed overseas contracts of CPC Engineering in the first half of the year reached 40.192 billion yuan, a year-on-year increase of 73.37%. On the surface, the total amount appears stable, but the structural changes are very drastic - the pipeline going abroad is shifting from selling steel pipes to building pipelines, transporting standards, and rooting overseas.

Seamless pipe exports lead North Africa

From January to April 2026, China's exports of seamless pipes to Algeria reached 119800 tons, a year-on-year increase of over 337%, making Algeria one of the countries with the highest volume of seamless pipe exports from China. The growth momentum comes from Algeria's oil and gas industry accounting for 30% of GDP and a $50 billion infrastructure plan. According to the export flow data in June, the five core export countries are Algeria, Thailand, Oman, Indonesia, and Nigeria, accounting for 34.42% of the total seamless pipe exports in China. The focus of foreign trade has shifted away from the European market, forming a new pattern of North Africa leading, Middle East supplementing, and ASEAN stabilizing.

Reverse export of welded pipes to the Middle East

Affected by the tense situation in the Middle East from January to April 2026, China's exports of welded pipes to 16 Middle Eastern countries decreased by 37.9% year-on-year. But there was a significant reversal in July, with the export volume of welded pipes reaching 540900 tons, a year-on-year increase of 9.54%. Among them, the export volume of welded pipes for oil and gas pipelines was 82960 tons, a month on month increase of 70%. The escalation of the US Iran conflict has led to an increase in shipping risks in the Strait of Hormuz. The United States is pushing Gulf countries to accelerate the construction of a land-based oil pipeline network that bypasses the strait. The progress of the Fujairah pipeline project is about 50%, and the procurement of large-diameter welded pipes has been carried out in batches. Energy related welded pipe orders have become a structural increase. Keywords: the Belt and Road News Network, Enterprise Sailing, Oil Pipeline

Double upgrade of EPC and overseas production capacity

In the overseas key projects of CNPC Engineering, the total contract amount for the Basra seawater pipeline in Iraq is about 18.032 billion yuan, and the contract amount for the fourth phase of the Fuxing gas field in Turkmenistan is 31.649 billion yuan, which is the largest single contract in the company's history. The pipeline bureau has won pipeline EPC contracts in multiple locations in Kazakhstan, Chad, and Tanzania. In terms of expanding production capacity overseas, Paibo Steel Pipe's Tanzania factory started production in July, and Dexin Steel Pipe signed a contract to settle in the Laiki Free Trade Zone in Nigeria for a high-end oil and gas pipeline project with a planned annual output of 500000 tons. Chengde Jianlong has completed the export delivery of the first batch of 2500 tons of high-grade casing products to the Libyan National Oil Company. The output of Chinese petroleum pipeline enterprises is not only steel pipe products, but also engineering service capabilities throughout the entire process of design, procurement, construction, and trial operation, as well as overseas localized manufacturing capabilities.Editor/Gao Xue