Baker Hughes to supply equipment for Aramco’s master gas system expansion: Aramco awarded US oilfield services provider Baker Hughes a contract to supply gas technology equipment for the expansion of the Kingdom’s primary natural gas pipeline, a statement by Baker Hughes read yesterday. The supply order was awarded to Baker Hughes in 1Q for the USD 10 bn third phase of expansion for Aramco’s Master Gas System (MGS-3). No financial details were provided.

What we know: The contract sees Baker Hughes providing 17 pipeline centrifugal compressors for the new 4k km pipeline that will help boost domestic gas distribution. Baker Hughes has already delivered 18 centrifugal compressors for the first and second phase of the project.

And that’s not all: Baker Hughes said it is investing in expanding its manufacturing site in Modon to help back the delivery of projects across Saudi, according to the statement.

SOUND SMART- Built in the mid-1970s, the MGS is the Kingdom’s main gas pipeline that includes a network linking gas production and processing sites across the Kingdom. Aramco has for some years now been working to expand the system. The MGS now has a capacity of 12.5 bn standard cubic feet per day.

REMEMBER- Aramco issued in February letters of intent to contractors it wants to hire to carry out work on the MGS-3. Those include China-based firms China Petroleum Engineering & Construction Company, Sepco, and Sinopec. They also include Indian multinational Larsen & Toubro Energy Hydrocarbon and Kalpataru Power Transmission among other firms. It’s yet to award contracts to successful bidders.

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