Spain’s Tecnicas Reunidas (TR) and China’s Sepco have emerged as the frontrunners for a Saudi Aramco tender for two booster gas compressor stations as part of the first phase of its Master Gas System Expansion (MGSE).

The state-owned oil company was evaluating engineering, procurement and construction (EPC) tenders from four contractors, but bids from Japan’s JGC Corporation and Italy’s Saipem have been unsuccessful and the list is down to two frontrunners.

“It is down to two contractors now,” says a oil and gas source based in Saudi Arabia. “TR was the lowest and Sepco the second lowest, and Aramco is negotiating with both parties.”

The budget for the contract is expected to be about $1bn and a decision is likely before the end of October. The scope of works includes the EPC of the two booster compressor stations, as well as all associated works including offsite and utilities. The location is between Dammam in the Eastern province and Riyadh.

MEED reported in October 2013 that the US’ Foster Wheeler had been awarded the front-end engineering and design for the scheme.

The MGSE is being implemented to meet increased gas demand from the Central and Western Regions. Once completed, the scheme will provide 9.6 billion standard cubic feet a day (scf/d) of gas using the booster gas compressor stations and pumping stations.  

A further three booster compressor stations are due to be added in a second phase.

The Master Gas System is operated by Saudi Aramco and is one of the world’s largest hydrocarbon networks. Construction started on the scheme in the mid-1970s as a means to transfer gas across the kingdom to support industrialisation. The system became fully operational in 1982 and allows Aramco to market all of its gas domestically.

Saudi Aramco was not available for comment when contacted by MEED.