Saudi KAD reported on September 19, 2016, that it has won a contract from national energy giant Saudi Aramco for extending the role of natural gas in the oil producer’s energy mix.
Saudi KAD will engineer, procure, construct and commission a gas pipeline network totalling 1,118 km in length.
Supporting systems, such as valve stations, fibre optic cables and metering systems, are also part of the contract.
The work is related to the Master Gas System 2 (MGS 2) and the Fadhili gas programme.
When the project is completed in 2018, the Master Gas System capacity will increase to 12.5 bln ft³/d.
These pipelines are expected to significantly expand Saudi Aramco's capabilities for delivering sales gas to power plants and petrochemical facilities throughout the Kingdom.
China’s Shandong Electric Power Construction Corp (SEPCO) is executing the first phase of the MGS expansion, installing booster gas compressor stations due to be complete by the end of 2016.
No value for the contract was given in the statement, although a source familiar with the matter said it was worth in the region of $1.33 bln.