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Saudi Aramco has started the tendering exercise for engineering, procurement and construction (EPC) works on the third expansion project of the Master Gas System network (MGS-III) in Saudi Arabia.

Aramco has divided the EPC work on the MGS-III project into 17 packages, according to sources. Contractors are currently preparing bids, which are due for submission in July.

Two of the main EPC packages cover upgrading existing gas compression systems and installing new gas compressors. The 15 other packages relate to the laying of gas transport pipelines across various locations in the kingdom.

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

To meet rising gas demand from both industrial and household sectors of the Saudi economy during the past decade, Aramco not only undertook projects to increase its non-associated gas production but also launched the second expansion phase of the Master Gas System in 2015.

Local contractor Arkad Engineering & Construction won the three main pipeline packages of MGS-II, 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-III 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, among others, are understood to have been invited to bid for MGS-III:

• A Hak (The Netherlands)
• Almeer Saudi Technical Services Company (Saudi Arabia)
• Al-Rashid Trading and Contracting Company (Saudi Arabia)
• Bin Quaraya Construction (Saudi Arabia)
• CAT Group (Lebanon)
• 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 and Toubro Energy Hydrocarbon (India)
• Mace (Saudi Arabia)
• M Al-Barghash Company (Saudi Arabia)
• Mapa Group (Turkey)
• Max Streicher GmbH and Company (Germany)
• National Basics Company (Saudi Arabia)
• Nesma and Partners (Saudi Arabia)
• Petroleum Vision Contracting Company (Saudi Arabia)
• Saipem (Italy)
• Sicim (Italy)
• Sinopec Engineering (China)
• Specialized Industrial Services Company (Saudi Arabia)
• Tecton Engineering and Construction (UAE)
• Tekfen Construction (Turkey)
• Yuksel Saudia (Saudi Arabia)

Aramco has been conducting a series of site visits and job-explanation meetings for contractors for the various MGS-III packages since late April, as per the sources.

The basic EPC scope of work on the MGS-III packages and their current bid submission dates are as follows:

Package 1 – 27 July:

Upgrade of existing booster gas compression stations (BGCS) 1, 3 and 5 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 the expansion of permanent accommodation facilities in east-west pump stations (EWPS) 1 and 5.

Package 2 – 27 July:

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 – 16 July:

Laying of 56-inch east-west gas pipelines 3 and 4 from EWPS-1 to Shedgum, covering a distance of 56 kilometres

Package 4 – 3 July:

Laying of 56-inch east-west gas pipelines 3 and 4 from EWPS-1 to EWPS-3, covering a distance of 300km

Package 5 – 16 July:

Laying of 56-inch east-west gas pipelines 3 and 4 from EWPS-3 to EWPS-4, covering a distance of 166km

Package 6 – 3 July:

Laying of 56-inch east-west gas pipelines 3 and 4 from EWPS-4 to EWPS-6, covering a distance of 370km

Package 7 – 3 July:

Laying of 56-inch east-west gas pipelines 3 and 4 from EWPS-6 to EWPS-8, covering a distance of 340km

Package 8 – 3 July:

Laying of 56-inch east-west gas pipelines 3 and 4 from EWPS-8 to EWPS-10, covering a distance of 480km

Package 9 – 3 July:

Laying of 56-inch EWJZG-1 from BGCS-10 to sector I STS 2, covering a distance of 458km

Package 10 – 3 July:

Laying of 56-inch EWJZG-1 from sector I STS 2 to sector II STS 1, covering a distance of 310km

Package 11 – 3 July:

Laying of 56-inch EWJZG-1 from sector II STS 1 to Shoqaiq, covering a distance of 462km

Package 12 – 3 July:

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

Package 13 – 3 July:

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

Package 14 – 3 July:

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

Package 15 – 3 July:

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

Package 16 – 3 July:

Laying of a 52km-pipeline to serve customers in Jeddah area

Package 17 – 3 July:

Laying of 30-inch and 16-inch lateral pipeline in Jizan cluster, covering a distance of 169km

With the EPC works on the main gas compressor packages 1 and 2 entailing the installation of 18 compression trains, Aramco is expected to split the scope of work on those two packages into two further sub-packages, one source told MEED.