📋 Tender Overview
Scope of Work:
Expansion of Master Gas System Network (MGS-3) - Third Phase.
Description:
The EPC scope covers laying of over 800 kms of lateral gas pipeline. The exact contract value of the three packages will be confirmed upon contract execution. The MGS-3 aims to expand the existing gas network in order to provide gas supply to various industrial consumers in the region. This expansion of the gas network is expected to enhance the ability to meet the growing energy demand in Saudi Arabia and replace liquid fuel burning, contributing to Saudi Arabia’s drive towards a diverse energy mix. KPIL is delighted to be collaborating with Aramco towards supporting energy security and reliability. Sinopec is expected to complete construction by end of May 2027.
The third phase of expansion aims to increase the total MGS network capacity to 12.5 billion standard cubic feet of gas per day, add 821 km of additional pipeline across the east-west pipeline corridor, and add one more gas compression plant. The EPC works on the USD 10 billion project have been divided into 17 packages. While the first two packages will focus on upgrading existing gas compression systems and installing new compressors, the remaining 15 will concentrate on laying gas pipelines in the kingdom.
The list is as follows:
Package 1: China Petroleum Engineering & Construction Company (China)
Package 2: SEPCO (China)
Packages 3 & 12: Gas Arabian (Saudi Arabia)
Packages 4 & 9: Mapa Group (Turkey)
Package 5: Bin Quraya Construction (Saudi Arabia)
Packages 6 & 7: Sinopec International Petroleum Service Corporation (China)
Package 8: Larsen & Toubro Energy Hydrocarbon (India)
Packages 10 & 14: Nesma & Partners (Saudi Arabia); SICIM (Italy)
Package 11: Max Streicher (Germany)
Packages 13, 15 & 17: Kalpataru Power Transmission (India)
The Phase 3 project aims to convert a number of power plants from oil to natural gas, contributing to Saudi Arabia’s drive towards a cleaner energy mix and its net-zero emission goal. It also aims at expanding the existing gas network in order to provide gas supply to various industrial consumers in the region and meet the growing energy demand in Saudi Arabia.
The gas transmission network, which was largely for domestic industrial and household consumption, rather than export, shifted the kingdom’s energy consumption mix by replacing oil for domestic power generation.
Previous Events:
March 2024- Kalpataru Projects International Limited (KPIL)received Letter of Intent from Saudi Arabia’s energy major, Aramco, for carrying out EPC work for three packages of the third expansion.
March 2024- Aramco, has selected 11 contractors to carry out the engineering, procurement and construction (EPC) works on the third phase of the Master Gas Network’s expansion, known as MGS-3.
