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Saudi Aramco to complete first phase of gas pipeline project by 2017

Gas

Saudi Arabia’s oil and gas company Saudi Aramco has announced to complete the first phase of the expansion of its main gas pipeline across Saudi Arabia by the end of 2017, thus aiming to meet the kingdoms rising gas demands

According to Reuters, the company has decided to complete the first phase by the end of 2017, increasing the capacity of the MGS to 9.6bn scf per day, with the second phase bringing that capacity up to 12.5bn scf per day in 2019.

As reported by the source, the pipeline expansion project is expected to help in delivering gas to the western region including the King Abdullah Economic City and the Rabigh 2 independent power plant.

Saudi Aramco is planning to double its gas production to 23bn scf per day for the next decade. The company revealed its plans which include boosting output at its Hawiyah and Haradh plants, with estimated project cost of US$4bn. The project aimed t expanding gas processing capacity at Hawiyah by 1.3bn scf of gas per day from current 2.5bn scf of gas per day.

Built in 1970, the Master Gas System (MGS) focus on gathering and processing associated gas from oil wells for the use of domestic industries in the Kingdom.

Saudi Aramco is a state-owned oil and gas company of the Kingdom of Saudi Arabia and an integrated, global petroleum and chemicals enterprise. Currently, the company is pressing on with gas-related projects in order to meet demand of the domestic energy consumption as well as save crude oil for export and refining purpose.

Recently, Saudi government announced plan to sell five per cent of the company’s stake in the planned 2018 initial public offering, part of Saudi Vision 2030 as the government plans to boost up Saudi economy beyond the oil sector.

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