Saudi Focus

Saudi KAD wins major pipeline contract

October 2016

State oil giant Saudi Aramco has awarded a major contract to Saudi KAD, a leading engineering, procurement and construction (EPC) company, for its strategic pipeline projects related to the Master Gas Programme Phase II, and the Fadhili Gas Programme.

When the project is completed in 2018, the Master Gas System (MGS) capacity will increase to 12.5 billion standard cu ft per day from its current capacity of 8.4 billion cu ft.

The contract is said to be worth in the region of SR5 billion ($1.33 billion), according to reports.

The scope of work includes engineering, procurement, construction and commissioning of a pipeline network totalling 1,118 km in length. 

These vital pipelines will significantly expand Saudi Aramco’s capabilities for delivering sales gas to power plants and petrochemical facilities throughout the kingdom.

The pipeline sizes will vary, with the biggest diameter reaching 56 inches and extending over a distance greater than 1,000 km. The scope also includes EPC work for valve stations, metering systems, launcher and receiver stations, fibre-optic cables, as well as road and rail crossings.

Saudi KAD is already engaged in executing Saudi Aramco’s Onshore Maintain Potential Programme and the new contract will further strengthen its existing relationship with the contractor.

Saudi KAD said all aspects of the projects will be executed in-kingdom, thereby positioning it as the first fully integrated Saudi EPC contractor.

China’s Shandong Electric Power Construction Corp (Sepco) is executing the first phase of the MGS expansion.

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