CIMC Enric Wins Overseas Gas Project Orders to Help African Energy Export

On September 8, CIMC Enric Holdings Limited (“CIMC Enric”, stock code: 3899.HK) announced that Jingmen Hongtu Special Aircraft Manufacturing Co., Ltd. (“Jingmen Hongtu”), a wholly-owned subsidiary of CIMC Enric, has been awarded by its African customer an order for a long-distance natural gas pipeline and cryogenic storage tank project (“Overseas Project”) for a total amount of nearly RMB500 million. The main purpose of the Overseas Project is to secure energy export of the customer to Europe and other markets.

The Overseas Project mainly comprises the installation of 105 km of long-distance natural gas pipelines, and the construction of 6 large cryogenic storage tanks and auxiliary stations.

As the European Union attempts to reduce its dependence on Russian pipeline gas, European countries have begun to seek alternative gas suppliers. Africa has significant gas reserves and production potential, and the additional gas demand from Europe offers Africa a key opportunity to develop gas-related infrastructure. LNG import data published by the European Union for the first quarter has shown that African countries have supplied more than 19% of LNG imported by Europe.

To safeguard energy security of the European Union, European countries plan to increase financial support for selected African countries to expand LNG exports from the continent. According to forecast from Rystad Energy, an energy consulting firm, Africa will see its gas production peak of 470 billion cubic meters by the late 2030s.

“Under the changing global energy supply landscape, Europe will see an increasingly diversified energy supply pattern such as the restart of nuclear energy projects and more LNG import channels. As a leading global supplier of the entire natural gas industry chain and nuclear fuel equipment, CIMC Enric is expected to benefit from the overseas clean energy equipment and engineering opportunities brought by these changes. Onshore overseas natural gas equipment and engineering orders we have signed up to the end of June increased by 70% year-on-year. In the future, we will continue to explore overseas and domestic markets and actively seize industry opportunities”, said the deputy general manager of CIMC Enric, who concurrently serves as head of Energy Equipment and Engineering Business Center.