Oil major extends bidding for gas contract
- Master Gas Expansion will improve network
- Project deemed essential by Aramco
- Eight bidders vying for $800 package
Saudi Aramco has extended the bid deadline for the compressor station package that forms part of its Master Gas Expansion project phase II plans.
The tender for the package was released in March and the initial closing date was 26 April. However, this has now been extended until May 10.
A total of eight contractors are still in the running for the package. They are:
- Daewoo Engineering & Construction (South Korea)
- Dodsal Group (Dubai-based)
- Hanwha Engineering & Construction (South Korea)
- JGC Corporation (Japan)
- Petrofac (UK)
- Sepco (China)
- SNC Lavalin (Canada)
- Tecnicas Reunidas (Spain)
The budget for the compressor is expected to be in the region of $800m.
Aramco is also tendering a residential package as well as four pipeline packages in conjunction with the compressor. They are:
Package 1: Western region pipeline
The main scope of works includes the construction of 422 kilometres of 56 pipeline on Aramcos East West Pipeline 2. Estimated budget is just over $827m.
Package 2: Central region pipeline
Scope includes the construction of 226km of 46 pipeline on the East West Qassim Gas pipeline 1. Estimated budget is almost $364m
Package 3: Eastern region pipeline
Scope includes the construction of 150km of 56 pipeline on the Shedgum Riyadh Gas Pipeline 3 as well as 40km of 56 pipeline on the Shedgum Riyadh Gas 2. Estimated budget is over $372m.
Package 4: East West Pipeline 1 Upgrade
Scope includes upgrade works on 10 sections of the existing pipeline without resorting to any shutdowns. Total length of upgrade section is 51km.
The contractors that have been prequalified to bid on the projects are a mix of local and international. They include:
- Al-Rashid Trading & Contracting (Local)
- C.A.T Group (Lebanon)
- Consolidated Contractors Company (Athens-based) / Dutco McConnell Dowell (UAE)
- Dodsal Group (UAE)
- HAK Group (Local)
- Saipem (Italy)
- Saudi KAD Construction (Local)
- Tekfen Holding (Turkey)
The Master Gas System is operated by Aramco and is one of the worlds largest hydrocarbons networks. Construction started on the scheme in the mid-1970s as a means to transfer gas across the kingdom to support industrialisation. The system became fully operational in 1982 and allows Aramco to market all of its gas domestically.
The first phase of the MGSE is under execution after several awards made by Aramco in 2014. These include pipeline contracts to Saipem and Dodsal as well as a $1.3bn deal to Chinas Sepco for the construction of two booster gas compressor stations.
Aramco is investing billions of dollars in increasing its gas production for domestic use. This includes associated and non-associated output, as well as non-conventional forms of the resource such as tight gas.
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