Saudi Aramco to Construct Phase 3 Expansion of Master Gas System Network with $10 Billion Budget
Construction on the master gas system network will be part of Saudi Aramco's phase 3 gas system expansion. This endeavor, which aims to expand the capacity of a facility that supplies natural gas to Saudi Arabia, has a budget of $10 billion divided into different packages.
(Photo : Unsplash/Maksym Kaharlytskyi )
Expansion of Master Gas System Network
Built in the 1970s, the first Master Gas System (MGS) was put into operation in 1982 after it had been put down. Natural gas has been supplied to Aramco's clients across Saudi Arabia through the network ever since. Most of the natural gas provided comes from Ghawar and other oil sources.
The company has launched efforts to enhance its production of non-associated gas throughout the previous decade in response to the growing demand for gas from the industrial and home sectors in Saudi Arabia. In 2015, for instance, it initiated the second expansion phase of the MGS, which was designated MGS-2.
During the third expansion phase of the Master Gas System network (MGS-3), which is expanding in the kingdom at an investment of $10 billion, the Saudi oil giant Aramco has picked contractors to perform engineering, procurement, and construction (EPC) works through 17 packages. The initial two products comprise setting up new gas generators and upgrading existing gas compression systems. Based on Aramco, the remaining fifteen packages are associated with installing gas transport pipelines in various places throughout the kingdom.
In December, Aramco finished soliciting interest (SoL) from builders for the two gas compression bundles of the MGS-3 project. On the other hand, SoLs for the supply chain packages were issued in March of the previous year. Within a short period, contractors have shown interest in all of these tenders, which is noteworthy.
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Amaro's Production of Natural Gas
As the world's largest oil exporter continues to move forward with its efforts to grow gas production, Saudi Aramco, the state-owned energy giant of Saudi Arabia, has discovered an additional 15 trillion cubic feet of natural gas and 2 billion barrels of condensate in the unconventional Jafurah inshore field. On Sunday, Feb. 25, Energy Minister Prince Abdulaziz bin Salman noted that the "discoveries expand the field's proved reserves to 229 trillion cubic feet of gas and 75 billion barrels of condensate."
On the other hand, Arabian Drilling, a regional provider of energy services, executed five-year agreements to furnish three land rigs to Saudi Aramco, a state-owned energy conglomerate, in support of its unconventional gas exploration endeavors earlier this month as per the statement that Arabian Drilling sent to the Saudi stock exchange, the company would provide Aramco with new rigs and entire crews at a cost of Riyals 850 million, which is equivalent to $226.7 million.
On Monday, Feb.12, Amin Nasser, the chief executive officer of Saudi Aramco, stated that the company would reallocate the cost savings received instead of the 1 million b/d capacity expansion towards the development of gas projects within the kingdom in addition to the preservation of oil capacity potential.
Thus, the unconventional gas program that Aramco is implementing is expected to displace up to 500,000 barrels of crude oil per day for domestic energy consumption. Aramco reportedly intends to increase gas production by fifty percent by 2030. The organization devotes hundreds of billions of dollars to developing the Jafurah unconventional sphere.
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