(Yicai Global) June 21 -- Shares of China CAMC Engineering rose after the engineering construction affiliate of China National Machinery Industry said it is expecting to gain USD1.2 billion for building a natural gas project in Kazakhstan.
Shares of CAMCE [SHE:002051] jumped as much as 8.8 percent to CNY6.67 (USD1) intraday. The stock price is still almost 5 percent down this year.
CAMCE will construct a facility with an annual capacity of six billion cubic meters of natural gas for Kazakhstan's Sozak Oil and Gas JSC in the two regions of Turkistan and Kyzylorda, the Beijing-based firm said in a statement yesterday.
The project should be ready in three years after construction starts following an advance payment. The engineering, procurement, and construction deal involves well drilling, exploration, and pipeline work.
The contract should positively affect CAMCE's business performance for three years while increasing its market share in the oil and gas sectors of countries that participate in China's Belt and Road, the firm added. President Xi Jinping launched the multi-billion-dollar initiative in 2013 to increase international connectivity.
Editor: Emmi Laine, Xiao Yi