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Aramco is said to have issued letters of intent to contractors it wants to hire to work carry out work on the Kingdom’s primary natural gas pipeline. The LOIs have been issued for engineering, procurement, and construction (EPC) work on the USD 10 bn third phase of expansion a program to expand Aramco’s Master Gas System (MGS-3), Meed reported last week, citing sources it says have knowledge of the situation.
SOUND SMART- Built in the mid-1970s, the MGS is the Kingdom’s main gas pipeline that includes a network linking gas production and processing sites across the Kingdom. Aramco has for some years now been working to expand the system. The MGS now has a capacity of 12.5 bn standard cubic feet per day.
Expect contracts to be awarded soon: Aramco will award official contracts to the winning bidders “later in this quarter”, sources told Meed.
Some of those on the list: The selected contractors include China-based firms China Petroleum Engineering & Construction Company, Sepco, and Sinopec. They also include Indian multinational Larsen & Toubro Energy Hydrocarbon and Kalpataru Power Transmission among other firms. Also on the list is a consortium between local contracting firm Nesma & Partners and Italy’s construction firm Sicim.
Ironing out the details: EPC works on the project are divided into 17 packages, with the first two focusing on upgrading existing gas compression systems and installing new compressors. The remaining 15 packages entail installing gas transport pipelines across different locations here.
