Aramco extends deadline for Master Gas System compression bids

17 November 2023
Saudi Aramco has already received technical and commercial bids for 15 of the 17 pipeline packages of the third Master Gas System (MGS) expansion phase

Saudi Aramco has given contractors more time to prepare bids for the main gas compression packages of the third expansion project of the Master Gas System network (MGS-3) in Saudi Arabia.

There are two main engineering, procurement and construction (EPC) packages in the MGS-3 project that cover upgrading existing gas compression systems and installing new gas compressors.

Technical bids and related In-Kingdom Total Value Add (IKTVA) credentials for the two main gas compression packages are due on 23 November.

Contractors were previously given deadlines of 8 November, 30 October and 30 September for the submission of technical and IKTVA bids for the two EPC packages.

Aramco has also extended the deadline for contractors to submit commercial bids for MGS-3 packages 1 and 2 to 30 November from 15 November, according to sources.

Aramco has divided the EPC work on the MGS-3 project into 17 packages, MEED previously reported. In addition to the two gas compression packages, there are 15 other packages that relate to laying gas transport pipelines at several locations in the kingdom.

Aramco received technical bids for the 15 pipeline packages of the MGS-3 project during the third and fourth weeks of August.

Contractors submitted commercial bids for 15 pipeline packages of the MGS-3 project during the last two weeks of September, MEED previously reported.

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The original Master Gas System was built in the 1970s and commissioned in 1982. Since then, Aramco has been supplying natural gas to its customers in Saudi Arabia through the network, mainly channelling associated gas from Ghawar and other oil fields.

Over the past decade, amid rising gas demand from the Saudi economy’s industrial and household sectors, Aramco has undertaken projects to increase its non-associated gas production. It launched the second expansion phase of the Master Gas System (MGS-2) in 2015.

Local contractor Arkad Engineering & Construction won the three main pipeline packages of MGS-2, worth an estimated $1.3bn, in early 2016.

EPC works were completed in 2021, increasing the gas handling and transport capacity of the Master Gas System from 8.4 billion cubic feet a day (cf/d) to 12.5 billion cf/d.

MGS-III EPC tendering phase

Aramco completed the solicitation of interest (SoI) process with contractors for the two gas compression packages of the MGS-3 project in December. SoIs for the pipeline packages were issued by Aramco in March, with contractors expressing interest within days.

The Saudi energy giant then issued the main EPC tender for all 17 packages in April, sources told MEED. The following contractors are understood to be among those that have been invited to bid for MGS-3:

  • A Hak (Netherlands)
  • Almeer Saudi Technical Services Company (Saudi Arabia)
  • Al-Rashid Trading & Contracting Company (Saudi Arabia)
  • Bin Quaraya Construction (Saudi Arabia)
  • CAT Group (Lebanon)
  • China Petroleum Pipeline (China)
  • Consolidated Contractors Company (Greece/Lebanon)
  • Denys Arabia (Saudi Arabia)
  • Diversified Lines Petroleum Services (Saudi Arabia)
  • Gas Arabian Services (Saudi Arabia)
  • Gulf Consolidated Contractors Company (Saudi Arabia)
  • Kalpataru Power Transmission (India)
  • Kent (UAE)
  • Larsen & Toubro Energy Hydrocarbon (India)
  • Mace (Saudi Arabia)
  • M al-Barghash Company (Saudi Arabia)
  • Mapa Group (Turkey)
  • Max Streicher & Company (Germany)
  • National Basics Company (Saudi Arabia)
  • Nesma & Partners (Saudi Arabia)
  • Petroleum Vision Contracting Company (Saudi Arabia)
  • Saipem (Italy)
  • Sepco Electric Power Construction Corporation (China)
  • Sicim (Italy)
  • Sinopec Engineering (China)
  • Specialised Industrial Services Company (Saudi Arabia)
  • Tecton Engineering & Construction (UAE)
  • Tekfen Construction (Turkey)
  • Yuksel Saudia (Saudi Arabia)

Aramco has been conducting site visits and job-explanation meetings for contractors for the MGS-3 packages since late April, according to industry sources.

The basic EPC scopes of work on the MGS-3 packages, and their commercial bid submission dates, are as follows:

Package 1 – 30 November (due for submission):

Upgrade of existing booster gas compression stations (BGCS) one, three and five along the east-west pipelines corridor of the Master Gas System by installing a total of eight compression trains in these stations. Three compression trains are to be installed in BGCS-1, two trains in BGCS-3 and three trains in BGCS-5. This package also includes expanding permanent accommodation facilities in east-west pump stations (EWPS) one and five.

Package 2 – 30 November (due for submission):

Building a new booster gas compression station – BGCS-10 – near EWPS-10 at the western side of the east-west pipelines corridor. Ten new compression trains are to be installed in BGCS-10. Additional scope of work includes the expansion of permanent accommodation facilities in EWPS-10.

Package 3 – 17 September:

Laying 56-inch east-west gas pipelines three and four from EWPS-1 to Shedgum, covering 56 kilometres (km)

Package 4 – 17 September:

Laying 56-inch east-west gas pipelines three and four from EWPS-1 to EWPS-3, covering 300km

Package 5 – 17 September:

Laying 56-inch east-west gas pipelines three and four from EWPS-3 to EWPS-4, covering 166km

Package 6 – 17 September:

Laying 56-inch east-west gas pipelines three and four from EWPS-4 to EWPS-6, covering 370km

Package 7 – 17 September:

Laying 56-inch east-west gas pipelines three and four from EWPS-6 to EWPS-8, covering 340km

Package 8 – 17 September:

Laying 56-inch east-west gas pipelines three and four from EWPS-8 to EWPS-10, covering 480km

Package 9 – 20 September:

Laying 56-inch EWJZG-1 from BGCS-10 to sector one STS-2, covering 458km

Package 10 – 20 September:

Laying 56-inch EWJZG-1 from sector one STS-2 to sector two STS-1, covering 310km

Package 11 – 20 September:

Laying 56-inch EWJZG-1 from sector two STS-1 to Shoqaiq, covering 462km

Package 12 – 19 September:

Laying 16-inch, 12-inch and 4-inch lateral pipelines in the Eastern Province and Qassim region clusters, covering 116km

Package 13 – 19 September:

Laying 16-inch, 12-inch, 10-inch and 4-inch lateral pipelines in the Riyadh cluster, covering 470km

Package 14 – 19 September:

Laying 56-inch, 16-inch and 10-inch lateral pipelines in the Shoaiba cluster, covering 212km

Package 15 – 18 September:

Laying 20-inch, 16-inch, 12-inch and 4-inch lateral pipelines from Yanbu to Rabigh, covering 192km

Package 16 – 19 September:

Laying a 52km pipeline to serve customers in the Jeddah area

Package 17 – 19 September:

Laying 30-inch and 16-inch lateral pipelines in the Jizan cluster, covering 169km.

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