(HQC) is a subsidiary of China National Petroleum Corporation (CNPC) Limited. It was founded in 1953 as a national chemical design institute. With over 70 years of evolution, HQC has emerged as a prominent EPC (Engineering, Procurement, and Construction) service provider. Its diverse business portfolio spans across various sectors, including oil and gas upstream, refinery, petrochemicals, inorganic chemicals, mining, fertilizer, LNG liquefaction, LNG regasification, and sustainable green energy solutions.
Headquartered in Beijing, China, HQC functions as a conglomerate composed of 11 domestic affiliates and 22 branches spread across global locations. Among the 11 domestic affiliates, 8 are dedicated engineering firms functioning as centers of competence, 2 operate as construction companies with proficient in-house labor teams, and the last one serves as the Corporate Research Academy, facilitating various research and development activities. The overseas branches and operations are organized into 5 regional hubs: the Middle East Center, Asia-Pacific Center, Central Asia-Russia Center, African-Euro Center, and America Center.
HQC maintains an annual sales revenue of approximately 3 billion US$ and keeps a headcount around 15 thousand excluding temporary hires for projects.
HQC, being a technology-based company, excels in technical consultancy and a wide array of engineering and designing services. These encompass general planning, conceptual design, pre-FEED, FEED, detailed design, and comprehensive technical support throughout the project development phase. Additionally, HQC possesses an extensive portfolio of patented process technologies, positioning it as a licenser capable of providing process design packages (PDPs) across various domains. These domains include areas like large-scale ethylene production exceeding 1 million tons annually, refining capacities over 10 million tons annually, substantial coal chemical and fertilizer projects, significant LNG liquefaction and re-gasification endeavors, as well as fine chemicals production, including acrylonitrile and methyl methacrylate.
The primary revenue streams of HQC are derived from EPC, EPCM, EPCC, and PMC business lines. These revenue streams leverage HQC's robust procurement capabilities and adept construction management prowess, complementing its engineering expertise. Notably, HQC operates a centralized procurement system catering to refinery and petrochemical projects for the whole CNPC group. This system has accumulated an extensive database of global vendors and suppliers, facilitated by HQC's well-maintained network of connections with them.
In addition, HQC has established a comprehensive Vendor Qualification system, encompassing a roster of 4000 vendors across 600 active categories. These categories encompass dependable sources for materials like piping and valves, static and rotating equipment, as well as instrumentation and electrical components. HQC's commitment to construction is reflected in its strong partnerships with subcontractors, further bolstered by two wholly owned subsidiary companies focused on construction. These two subsidiaries contribute an in-house workforce of around 5000 skilled individuals for construction endeavors.
HQC's capabilities extend further to encompass equipment manufacturing and modular fabrication yards, enriching its suite of strengths. Collectively, these strengths position HQC as a proficient executor of large-scale turnkey projects on a global scale. A notable instance is the recent EPC undertaking for the Guangdong Petrochemical Complex, with a project total investment valued at a staggering 10 billion US dollars.This project encompasses the construction of a 400 kbpd refining facility, 1.2 mtpa ethylene production, 0.4 mtpa polyethylene production, 0.5 mtpa polypropylene production, 0.8 mtpa styrene production, and 2.6 mtpa xylene production. Over the past few decades, HQC has impressively completed over 2000 large-scale general contracting projects. The cumulative refinery capacity has now surpassed 6.5 million bpsd, while petrochemical production capacity has exceeded 56 million tons annually.
HQC holds the distinction of being one of China's earliest engineering firms to venture into cryogenic technologies. The company's journey began with the execution of China's inaugural LNG-receiving terminal project in 2003. Since then, HQC has executed over 120 LNG projects. Notably, HQC leads the National R&D Center for LNG technology and boasts more than 83 patented technologies that span the entire LNG production chain, encompassing DMR and SMR LNG liquefaction technologies. HQC has released PDPs for capacities up to 5.5 MTPA per single line. The company has successfully delivered 99 cryogenic storage tanks of varying types, featuring capacities ranging from 30,000 m3 to 220,000 m3, with more than 70 dedicated to LNG storage.
Beyond its primary expertise in downstream operations, HQC is dynamically involved in the upstream segment of the oil and gas industry. This encompasses a wide spectrum of activities such as CPF, NGL, gas treatment, sulfur recovery, water treatment, pipelines, storage tanks, general engineering services, project management consultancy (MPC) and more. This diversification extends across multiple countries, including but not limited to Iraq, Saudi Arabia, the UAE, Libya, Algeria, Chad, Venezuela, Canada, and others.
HQC holds the complete Class A qualification certifications in China, in addition to international conformity certificates like ISO 9001, ISO 14001, OHSAS 18001, and CNPC HSE certificates.
History
1953–1983
Established in 1953, HQC emerged as the first national chemical design institute in the People's Republic of China. During this era, a concerted effort was made to align the design systems, procedures, and methodologies with international standards. This gradual transformation resulted in the establishment of a nationally recognized chemical design institute, housing experts across various domains and fortified with robust technical prowess for the chemical industry.
1984–1994
The year 1984 marked the initiation of HQC's transition from a design institute to an engineering firm. A noteworthy achievement took place in 1992 when HQC became China's pioneering pilot institution to shift from a cost-reimbursable model to complete self-responsibility for its financial outcomes. This reformation facilitated the streamlined allocation of resources for human capital, technology, and assets, leading to substantial enhancements in operational efficiency.
1995–2005
HQC secured its inaugural overseas EPC project in 1995, setting the stage for a decade characterized by a sequence of successful EPC and PMC undertakings in international markets. During this phase, international business revenues peaked, accounting for roughly 70% of HQC's total earnings.
2005–2015
In June 2005, HQC merged with China National Petroleum Corporation (CNPC), resulting in a significant boost in its capacity to manage large-scale, intricate EPC projects. This merger also contributed to heightened market competitiveness and an increased ability for technical innovation. As a consequence, HQC experienced exponential year-on-year growth in business revenue, progressing steadfastly towards its aspiration of becoming a world-leading engineering company.
2016~present
Advancing rapidly toward its aim of becoming a top-tier global comprehensive engineering service provider for the refining and petrochemical industry, HQC reached a noteworthy juncture. In early 2017, HQC, in collaboration with its sibling engineering firms within the CNPC group, was successfully listed on the Shanghai Stock Exchanges under the newly formed entity known as CPEC. This entity, trading as 600339, has CNPC as its principal shareholder, holding a majority stake of 72.2%.
Organization structure
China Huanqiu Contracting & Engineering Co., Ltd.'s main office is situated at No. 1, Chuangda 2nd Road, Laiguangying Hi-Tech Park, Chaoyang District, Beijing, P.R. China. HQC possesses a total of 11 affiliate companies, each either fully owned or majority owned, spread across various cities in China. The names and the respective percentage of equity held by HQC in these affiliate companies are provided as follows:
China Huanqiu Engineering Co., Ltd. Beijing Branch (HQC-Beijing), 100%
PetroChina East China Design Institute Co., Ltd. (HQC-East China), 100%
China Petroleum Sixth Construction Co., Ltd. (CP6CC), 100%
CNPC Jilin Chemical Construction Engineering Co., Ltd. (JCC), 100%
HQC Corporate Research Academy (HQC-R&D), 100%
HQC employs a diversified approach for its international operations. The network comprises 22 well-established overseas branch companies and representative offices, which act as the primary contact points for customers and serve as the exclusive representatives of HQC within their assigned country markets. Concurrently, the 11 domestic subsidiaries operate as centers of expertise, each responsible for specific business lines. In instances necessitating the execution of projects overseas, HQC coordinates the mobilization of production resources from its affiliate companies in China under the guidance and supervision of the head office. In the Middle East, HQC's presence is anchored by its regional hub situated in Dubai, supported by registered branch companies in key locations such as Abu Dhabi (UAE), Dubai (UAE), Saudi Arabia, and Iraq.
Scope of Work: Conceptual Design, Basic Design, EPC
Project Name: Jiangsu LNG Receiving Terminal
Client: CNPC
Location: Jiangsu, China
Services: EPC
Capacity:
3.5 mtpa / 3x160,000m3 (Phase 1)
6.5 mtpa / 1x200,000m3 (Phase 2)
10 mtpa / 2x200,000m3 (Phase 3)
Project Name: Yunnan Refinery
Client: CNPC
Location: Kunming, China
Services: FEED+EPC
Capacity: 13 million MTPA
Project Name: SPT PROJECT SAR-X/DIB
Client: Exxonmobil
Location: Jurong Island, Singapore
Services: Main Mechanical Contractor
Project Name: Changqing Gas Chemical Complex
Client: CNPC
Location: Yulin, China
Services: EPC
Capacity: 800 ktpa
Project Name: Guangdong Petrochemical Complex
Client: CNPC
Location: Jieyang, China
Services: EPC
Capacity:
Refinering 400 kbpd;
Ethylene 1.2 mtpa;
Polyethylene 0.4 mtpa;
Polypropylene 0.5 mtpa;
Styrene 0.8 mtpa;
Xylene 2.6 mtpa
Project Name: PETRONAS RAPID HDPE/PP
Client: PETRONAS
Location: Pengerang, Malaysia
Services: EPCC
Capacity: HDPE 400 ktpa; PP 2x450 ktpa
Project Name: Ningxia Gas to Fertilizer Project
Client: CNPC
Location: Ningxia, China
Services: EPC
Capacity: Ammonia: 450 ktpa; Urea: 800 ktpa
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