23/10/2014 06:09 AST

Saudi Aramco has contracted a Chinese group for a project to help expand the capacity of the main gas pipeline across Saudi Arabia, which dates back to the 1970s, aiming to improve energy supply to industries in the west of the country.

Under the contract, the first phase of an expansion of the master gas system (MGS), China's Shandong Electric Power Construction Corporation (Sepco) will instal two booster gas compressor stations.

MGS was built in the mid-1970s to gather and process associated gas from oil wells and use it for domestic industries.

The project will help deliver gas to the western region, including the King Abdullah Economic City, PetroRabigh and an independent power plant.

Sources estimated the contract's value at less than $1 billion to around $1.3bn.

Once Sepco's work is complete by the end of 2016, the capacity of MGS will rise to 9.6bn cubic feet of gas a day from 8.4bn.


Gulf Daily News

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