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Saudi Aramco: 11 EPC contractors selected for gas network expansion

Aramco, Saudi Arabia’s leading energy company, has selected contractors to carry out engineering, procurement and construction works on the third phase of the Master Gas Network’s expansion, known as MGS-3.

According to a report by MEED, EPC works on the $10 billion project have been divided into 17 packages, with the first two focused on upgrading existing gas compression systems and installing new compressors. The remaining packages are for laying gas transport pipelines across the kingdom.

The scope of work for the remaining contracts involves laying new pipelines and expanding associated facilities from east to west and in densely populated clusters across the kingdom to meet increased industrial and household demand since the second upgrade (MGS-2) in 2015 to the gas network, which was originally built in the 1970s.

Aramco has issued letters of intent to the following contractors for 16 out of 17 EPC packages for MGS-3, and is expected to formally award the contracts later in the quarter, sources confirmed to MEED. Package 16, which involves laying a 52km pipeline to serve customers in the Jeddah area, will be issued later as a separate tender

List of selected contractors for MGS-3

According to MEED, the following contractors have been selected for the respective contract packages.

  • Package 1: China Petroleum Engineering & Construction Company (China)
  • Package 2: SEPCO (China)
  • Packages 3 & 12: Gas Arabian (Saudi Arabia)
  • Packages 4 & 9: Mapa Group (Turkey)
  • Package 5: Bin Quraya Construction (Saudi Arabia)
  • Packages 6 & 7: Sinopec International Petroleum Service Corporation (China)
  • Package 8: Larsen & Toubro Energy Hydrocarbon (India)
  • Packages 10 & 14: Nesma & Partners (Saudi Arabia); SICIM (Italy)
  • Package 11: Max Streicher (Germany)
  • Packages 13, 15 & 17: Kalpataru Power Transmission (India)
What is Aramco’s Master Gas System?

Located in the Eastern Province and one of the largest hydrocarbon networks in the world, the MGS was initiated in the 1970s to harness gas resulting from oil production that would otherwise have been flared or burned off.

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