ON the 30th of November 2011, Shandong Shengli Steel Pipe Co Ltd, a wholly owned subsidiary of Shengli Oil & Gas Pipeline Holdings Limited, delivered its last shipment of steel pipes for the Phase II of Sino-Kazakh Natural Gas Pipeline Project by train to Alashankou marking the completion of production and delivery tasks.

The 1,453 kilometer long Phase II of the Sino-Kazakh Natural Gas Pipeline Project which is also called Beyneu-Shymkent Gas Pipeline Project, or Southern Kazakhstan Pipeline, starts from Beyneu, passes through Bozoy and ends at Shymkent, Ongtustik.

The pipeline project will consist of two phases

1. The first phase which will run from Bozoy to Shymkent with an annual gas transmission capacity of 6 billion cubic metres will be constructed during 2010 to 2012

2. Second phase, which will connect Beyneu and Bozoy with an annual gas transmission capacity of 10 billion to 15 billion cubic metres, will be built during 2014 to 2015.

On the 28th of September, 2011, Shandong Shengli Steel Pipe received a notice from China Petroleum Technology & Development Corporation for production of steel pipes for the Phase II of the Sino-Kazakh Natural Gas Pipeline Project, and it immediately arranged for production at its number two workshop and number three workshops.

With the cooperation of Shandong Shengli departments of production, sales, quality inspection, technology and quality management, as well as the effective communication with the client and supervisory party, the Company successfully delivered the first shipment of steel pipes for the natural gas pipeline project on the 11th of October.

Shandong Shengli took only 14 days to complete the whole process, setting a supply speed record once again for steel pipes in China. It took the company only 54 days to produce and deliver a total 33,015 tonnes of steel pipes for the Beyneu-Shymkent Gas Pipeline Project. All the steel pipes met the quality standards at an on-site inspection.