Chinese yard Shanghai Zhenhua Heavy Industries (ZPMC) is involved in advanced talks with independent oil and gas player Poly GCL for a contract covering engineering, procurement and construction work on the latter's proposed project to feed gas from Ethiopia to a liquefied natural gas facility off Djibouti.

Sources said that a deal could be finalised as soon as ZPMC parent China Communications Construction Company (CCCC) concludes a farm-in deal with Poly GCL to invest in both the upstream and downstream gas development in Ethiopia.