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China Petroleum Engineering wins $2.52 B contract for Russia gas project

BEIJING (Reuters) -- China Petroleum Engineering said a subsidiary has won a contract worth $2.52 B for the construction of a gas processing plant with Russia's NIPI gas.

The project, part of the Power of Siberia pipeline to ship gas from eastern Siberia to China, will process 42 Bcm of gas a year, the company said in a statement to the Shanghai Stock Exchange on Wednesday.

It will take eight years to build and require an estimated total investment of between $15-20 B, it added.

The Russia-China eastern pipeline is designed to deliver 38 Bcm of gas per year to China over 30 years, with the first deliveries scheduled for 2019.

Reporting by Dominique Patton; Editing by Alison Williams

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