EXCLUSIVE: Contractor on track with Saudi Aramco gas pipelines

04 October 2018
Three master gas scheme packages are due to be delivered next year

Privately owned Saudi contractor Arkad Engineering & Construction (E&C), which in early 2016 won three pipeline packages worth about $1.3bn as part of Saudi Aramco’s Master Gas System Expansion (MGSE), is set to complete work on those contracts by the end of the first quarter of 2019.

Arkad E&C is working on building pipelines to transport gas in the eastern, central and western regions of the kingdom, as part of phase 2 of the MGSE megaproject.

“The [MGSE] project is at an advanced stage," a source tells MEED. " There are various packages within the MGSE project that Arkad is executing. All of the packages will be delivered between the fourth quarter of 2018 and first quarter of 2019.”

Arkad in July announced it had secured a loan of $54m from Arab Petroleum Investments Corporation (Apicorp) for its work on the central region pipeline package.

The MGSE project is Aramco’s flagship initiative to support the development of Saudi Arabia’s non-associated gas, unconventional gas and related condensate reserves.

Once completed, the project will raise the original Master Gas System’s capacity to 12.5 billion cubic feet a day (cf/d) of gas, from 8.4 billion cf/d currently.

It will help deliver gas to the kingdom's key industrial zones, including King Abdullah Economic City, Rabigh Refining & Petrochemical Company (PetroRabigh) and other vital power plants.

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