The Saudi Arabian oil giant, Aramco, has awarded Saudi KAD four lucrative procurement and construction contracts (EPC) to build pipelines with investments projected at $1.33b, Gulf Business reported.
The company will engineer, procure, construct and commission a gas pipeline network totaling 1,118km in length. The pipelines will significantly expand Aramco’s capabilities to deliver gas to power plants and petrochemical facilities. The scope also includes EPC work for valve stations, metering systems, launcher and receiver stations, fiber optic cables, as well as road and rail crossings, according to Your Oil & Gas News.
Saudi KAD is already involved in Aramco’s onshore maintain potential program. The four new contracts awarded under the Master Gas System 2 (MGS 2) and the Fadhili Gas Program will further strengthen the existing relationship between KAD and Aramco. All projects will proceed concurrently, necessitating the deployment of significant manpower and equipment resources, over vast geographical regions.
Saudi Arabia, the world’s top oil exporter, is pressing ahead with gas-related projects to meet rising domestic demand and conserve oil for export and refining. MGS 2 will raise the capacity of the system which constitutes the kingdom’s main gas pipeline to 12.5bcf/d of gas by 2018.
