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Last Updated on 05
Kalpataru Projects International Limited (KPIL) has announced that it has received a Letter of Intent (LoI) from Saudi Arabia’s energy major, Aramco, for carrying out engineering procurement and construction (EPC) work for three packages of the third expansion phase of the Master Gas System Network (MGS-3) in Saudi Arabia.
The EPC scope covers the laying of over 800 km of lateral gas pipelines. The exact contract value of the three packages will be confirmed upon contract execution.
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 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
Aramco's Master Gas System (MGS) is an extensive network of pipelines that plays a crucial role in capturing, processing, and transporting natural gas throughout Saudi Arabia.
The MGS was one of the biggest energy projects in Aramco’s history, enabling one of the world’s largest gas markets and transforming the national energy mix toward clean fuel. It was designed to derive value from its range of gas deposits, deliver it to consumers to generate cleaner power, and develop Saudi Arabia’s chemical industry.
The MGS aims to reduce the amount of oil used in domestic power production and aims to achieve zero routine flaring by 2030. The expansions will add more than 3000 km of pipeline with more than 15 compression trains to supply existing customers and more than 30 new industrial facilities in the Eastern, Central, and Western regions.
The construction of the MGS started in the mid-1970s and came online in 1982, predominantly to transport associated gas from the Ghawar field to support industrialization. Since its initial commissioning in 1982, it has played a pivotal role in distributing natural gas throughout Saudi Arabia.
With the increasing demand for gas from both industrial and household sectors, Aramco initiated the second expansion (MGS-2) in 2015. The third expansion phase (MGS-3) is currently underway.
Kalpataru Projects International Limited is one of the largest specialized EPC companies engaged in power transmission & distribution, buildings & factories, water supply & irrigation, railways, oil & gas pipelines, urban mobility (flyovers & metro rail), highways and airports.
KPIL is currently executing projects in over 30 countries and has a global footprint in over 70 countries. KPIL has maintained a leadership position in all its major businesses, backed by strong organizational capabilities, superior technical know-how, and adherence to best-in-class sustainability standards.
To learn more about their upcoming and ongoing construction projects, check out our comprehensive database.
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