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GAS close to landing contracts for Aramco’s big gas grid expansion: Nomu-listed Gas Arabian Services Co. (GAS) received two non-binding letters of intent (LOIs) from state-owned oil giant Aramco for the expansion of the Kingdom’s primary natural gas pipeline, it said in two disclosures to Tadawul (here and here).
What GAS might be getting: The LOIs see GAS providing engineering, procurement, and construction (EPC) work worth SAR 416.3 mn for the East and Qassim Clusters and SAR 344.6 mn for Shedgum to EWPS-1 as part of the USD 10 bn third phase of expansion a program to expand Aramco’s Master Gas System (MGS-3).
About GAS: Established in 1992 as a trading house in Dammam, the company evolved to become a total technical solutions provider, venturing into trading of industrial products and solutions as well as manufacturing, according to its website. It boasts clients in the oil, gas, petrochemicals, electricity and cement industries and is an approved vendor of Aramco, Saudi Electricity Company (SEC), and the Royal Commission of Jubail and Yanbu (RCJY).
BACKGROUND- Sources told Meed last week that Aramco has issued LOIs to contractors it plans to hire to carry out EPC work on the planned expansion of the nation’s primary natural gas system. It is expected to award official contracts to the winning bidders “later in this quarter”, sources told Meed.
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.
