Nomu-listed Gas Arabian Services (GAS) signed contracts with Aramco to provide engineering, procurement, and construction (EPC) work worth SAR 760.9 mn for the expansion of the Kingdom’s primary natural gas pipeline, according to two separate disclosures to Tadawul (here and here). This comes a few months after GAS received two non-binding letters of intent from Aramco for the expansion of the vital pipeline.

What we know: GAS will provide EPC work worth SAR 416.2 mn for the East and Qassim Clusters and SAR 344.6 mn for Shedgum to EWPS-1 as part of the USD 10 bn third phase of expansion a program to expand Aramco’s Master Gas System (MGS-3).

GAS was the first to see its letter of intent formalized: Aramco issued in February letters of intent to contractors it wants to hire to carry out work on the MGS-3, including GAS and a consortium between local contracting firm Nesma & Partners and Italian construction firm Sicim among others. Also included: China-based firms China Petroleum Engineering & Construction Company, Sepco, and Sinopec, as well as Indian multinational Larsen & Toubro Energy Hydrocarbon and Kalpataru Power Transmission, among other firms.

With an update: Sources told Meed yesterday that Aramco has received revised commercial bids from contractors for one of the packages under the project. They said that the oil giant asked unnamed contractors to send revised bids after prices submitted by contractors earlier “exceeded Aramco’s budget.” the sources said. The scope of the EPC work under the package has also been revised, they said.

Baker Hughes is also taking part: Aramco awarded last month US oilfield services provider Baker Hughes a contract to supply gas technology equipment for the MGS-3. The supply order was awarded to Baker Hughes in 1Q 2024.

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.

About GAS: Established in 1992 as a trading house in Dammam, the company evolved to become a total technical solutions provider, venturing into trading of industrial products and solutions as well as manufacturing, according to its website. It boasts clients in the oil, gas, petrochemicals, electricity and cement industries and is an approved vendor of Aramco, Saudi Electricity Company, and the Royal Commission of Jubail and Yanbu.

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