Saudi Aramco’s Shedgum to Yanbu Pipeline Extension project is delayed, according to industry sources.
Work is ongoing on the project, despite expectations that it would become operational before the end of 2017.
Saudi Aramco awarded Italy’s Saipem the engineering, procurement and construction (EPC) contract to build the Shedgum to Yanbu natural gas liquid (NGL) pipeline expansion project in 2014.
Since then delivery has been affected by a series of delays.
Under the original schedule it was due to be completed in the second half of 2017.
The project is part of Aramco’s master gas initiative aimed at transporting natural gas around the kingdom for industrial use and power production.
The EPC contract won by Saipem was for loops four and five linking Shedgum to Yanbu and providing gas feedstock to the kingdom’s second-largest industrial city.
The scope of work included detailed design, engineering, procurement, installation, commissioning and start up assistance for two pipelines.
The pipeline will have a total length of 585 kilometres and a diameter of 30 inches.
Aramco said in 2013 that more than 70 per cent of the materials needed for the scheme would be sourced locally from manufacturers.
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