First phase of Saudi MGS set for completion this year
Thursday, Aug 03, 2017
Saudi Aramco has said that the first phase of an expansion of the main cross-country gas pipeline, the Master Gas System (MGS), will be complete by the end of 2017.

“The first phase will be completed by the end of 2017, increasing the capacity of the MGS to 9.6 bcf [272 mcm] per day. The second phase will bring that capacity up to 12.5 bcf [354 mcm] per day in 2019,” Aramco said last week in its Arabian Sun magazine.

The first phase of the MGS expansion, involving new pipelines and booster gas compressor stations, was originally due to be completed by the end of 2016.

The MGS was built in the mid-1970s to gather and process associated gas from oil wells for domestic industry, as part of an effort to meet the kingdom’s rising gas demand and to save crude for export and refining.

The expansion projects will help deliver gas to the western region, including the King Abdullah Economic City and the Rabigh-2 Independent Power Project (IPP).

The first phase commenced after Aramco awarded key contracts in 2014. These included pipeline deals to Italy’s Saipem, the UAE’s Dodsal, and Haifa-based CAT Group, as well as a US$1.3 billion deal to China’s Sepco for the construction of two booster gas compressor stations.

In September 2016, Saudi KAD was selected as Aramco’s contractor for executing several key pipeline projects related to the second phase of the MGS, including the EPC work and commissioning of a pipeline network of 1,118 km in length. The sizes of pipeline will vary, with the largest diameter being 56 inches (1,422 mm).

Aramco plans to nearly double its gas production to 23 bcf (651.3 mcm) per day over the next decade. The plans include boosting output at its Hawiyah and Haradh plants, in projects which are estimated to cost US$4 billion.

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