Aramco selects contractors for Master Gas System expansion

22 February 2024
The Saudi energy giant has issued letters of intent to contractors for 16 EPC packages of the estimated $10bn third expansion phase of the Master Gas System


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Saudi Aramco has selected contractors to execute engineering, procurement and construction (EPC) works on the third expansion phase of the Master Gas System network (MGS-3) in Saudi Arabia.

Aramco has divided EPC works on the estimated $10bn MGS-3 project into 17 packages. The first two packages involve upgrading existing gas compression systems and installing new gas compressors.

The 15 other packages relate to laying gas transport pipelines across various locations in the kingdom.

According to sources, Aramco has issued letters of intent (LoIs) to the following contractors for 16 EPC packages of the MGS-3 project:

  • Package 1 – China Petroleum Engineering & Construction Company (China)
  • Package 2 – Sepco (China)
  • Packages 3 + 12 – Gas Arabian (Saudi Arabia)
  • Packages 4 + 9 – Mapa (Turkey)
  • Packages 6 + 7 – Sinopec Petroleum Services (China)
  • Packages 8 – Larsen & Toubro Energy Hydrocarbon (India)
  • Packages 10 + 14 – Nesma & Partners (Saudi Arabia)/Sicim (Italy)
  • Packages 13 + 15 + 17 – Kalpataru Power Transmission (India)
  • Package 5 – Bin Quraya (Saudi Arabia)
  • Package 11 – Max Streicher (Germany)

The official contract awards are expected to take place “later in this quarter”, sources told MEED.

Package 16, which was originally part of the tendering process for the MGS-3 project, has been carved out as a separate tender by Aramco, the sources added.

Aramco did not respond to MEED’s request for comment on the information.

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

Over the past decade, amid rising gas demand from Saudi Arabia’s industrial and household sectors, Aramco has undertaken projects to increase its non-associated gas production. It launched the second expansion phase of the MGS (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 MGS’s gas handling and transport capacity from 8.4 billion cubic feet a day (cf/d) to 12.5 billion cf/d.

MGS-3 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 last year, with contractors expressing interest within days.

The Saudi energy giant then issued the main EPC tender for all 17 packages last April. The following contractors, among others, were understood to 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 (Turkiye)
  • 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 (Turkiye)
  • Yuksel Saudia (Saudi Arabia)

Aramco began conducting site visits and job-explanation meetings for contractors for the various MGS-3 packages in late April.

The Saudi energy giant 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 the pipeline packages during the last two weeks of September, MEED previously reported.

Regarding the two main gas compression packages, contractors submitted technical bids and related In-Kingdom Total Value Add (IKTVA) credentials by 4 January this year. Commercial bids for the gas compression packages were submitted by 7 January, according to sources.

The basic EPC scopes of work on the MGS-3 packages are as follows:

Package 1:

Upgrade of existing booster gas compression stations (BGCS) one, three and five, along the east-west pipelines corridor of the MGS 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:

Building BGCS-10, a new BGCS 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:

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

Package 4:

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

Package 5:

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

Package 6:

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

Package 7:

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

Package 8:

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

Package 9:

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

Package 10:

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

Package 11:

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

Package 12:

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

Package 13:

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

Package 14:

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

Package 15:

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

Package 16 (separate tendering process to start):

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

Package 17:

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

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