Saudi Aramco awards contract for gas project

SEPCO to install two booster gas compressor stations

Picture for illustrative purposes only.
Picture for illustrative purposes only.

Saudi Aramco has signed a contract with Chinese firm Shandong Electric Power Construction Corporation (SEPCO) to design and build a Master Gas System Booster Gas Compression Station.

The first two phases entail the installation of pipe branching off and along the East/West Pipeline, construction of three compression station facilities, and residential facilities. The project will also introduce, for the first time in the company, an integrated waste-heat recovery system for power generation.

MGS was built in the mid-1970s to gather and process associated gas from oil wells and use it for domestic industries. The project will help deliver gas to the western region, including the King Abdullah Economic City, PetroRabigh and an independent power plant.

According to certain media reports, the contract is worth $1.3bn. However, Saudi Aramco has not confirmed the figures. 

Once SEPCO’s work is complete by the end of 2016, the capacity of MGS will rise to 9.6bn cubic feet of gas a day (cfd) from 8.4bn. Aramco said capacity will further increase to 12.5bn cfd by 2018 under a second phase, for which engineering design work is due to be complete next year.

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