Six high-efficiency gas compression trains for the first phase of Saudi Aramco’s Master Gas System Expansion Project have been assembled locally in Dammam, Saudi Arabia, for the first time, marking a significant boost to efforts in promoting localization and developing local content.
The local manufacturing of the compression trains by GE Oil and Gas is in line with the vision of Saudi Aramco’s In-Kingdom Total Value Add Program (IKTVA), a program designed to drive domestic value creation and maximize long-term economic growth and diversification to support a rapidly changing Saudi economy.
By 2021, Saudi Aramco is striving to achieve a 70% localization of spending, creating a business environment that will provide 500,000 new jobs and enable 30% export of Saudi energy sector products.
A manufacturing first
GE Oil and Gas recently cut the ribbon on one of the units at its GE Manufacturing and Technology (GEMTEC) Dammam facility. Saudi Aramco has encouraged GE to invest in its Dammam facility so that it can perform complex assemblies.
GE Oil and Gas places a strong focus on localization - the first high-efficiency compression trains assembled locally, represent a key milestone in the IKTVA program initiatives. How GE are executing this project underpins their commitment to developing the Saudi economy through job creation, knowledge transfer and supporting local sourcing.
A total of six compression trains, which have been fully assembled locally at GEMTEC, are part of a multi-million dollar contract to provide 18 high-efficiency gas compression trains — each consisting of an aero-derivative gas turbine driving a centrifugal compressor.
In 2016, six more trains will be assembled at GEMTEC as part of the second phase of the Master Gas System Expansion Project.
IKTVA in action
It is the first time that high-efficiency compression trains have been assembled in Saudi Arabia, at a center where 70% of the workforce are Saudi nationals. As part of this program, GE Oil and Gas has qualified a network of Saudi-based suppliers for local and international GE markets.
The development marks a strong demonstration of Saudi Aramco’s IKTVA program capitalizing on the three program objectives: to localize, to export energy-related goods and services, and to boost Saudization.