Kalpataru Projects International Limited (KPIL) has signed a major engineering, procurement, and construction (EPC) contract worth USD 900 (INR 7550 crore) million from Saudi oil giant Aramco. The EPC contract involves the development of the pivotal Master Gas System Network (MGS-3) project. KPIL, formerly known as Kalpataru Power Transmission Limited, is one of India’s largest EPC companies.

KPIL received the letter of intent for the MGS-3 project from Aramco on March 5th. The MGS-3 aims to expand the existing gas network to provide gas supply to various industrial consumers in the region. This expansion of the gas network is expected to enhance its ability to meet the growing energy demand of the global natural gas market .

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Manish Mohnot CEO and Managing director of KPIL, said, “KPIL is pleased to collaborate with Aramco in advancing energy security and reliability. We are confident that upon project completion, it will aid in supporting the energy transition in Saudi Arabia,”

With approximately two decades of experience in cross-country pipelines, processing facilities, refineries, and fertilizer plants, KPIL has successfully commissioned over 10,000 kilometres of oil, gas and water pipelines in the Middle East and India. According to Mohnot, this substantial order will fortify Kalpataru’s order book profile and propel its oil and gas business towards a robust growth trajectory in the future.

Scope of the Project 

The EPC scope of the contract encompasses laying over 800 km of lateral gas pipeline. The precise contract value of the three packages will be finalized upon contract execution. The MGS-3 project aims to expand the current gas network to provide gas supply to various industrial consumers in the region.

This augmentation of the gas network is anticipated to bolster the capacity to meet the burgeoning energy demand in Saudi Arabia and phase out the combustion of liquid fuels. This aligns with Saudi Arabia’s push towards a diversified energy mix.

Read: KPIL Secures EPC Contract from Aramco for the Development of Master Gas System Network in Saudi Arabia

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