Project Profile
Value: US$1.65 billion
Location: from Yanbu on the Red Sea to Shedgum, passing by Ryadh, Saudi Arabia
Length: 500 additional kilometres of pipelines
Capacity: 12.5 bscfd
Start-up Year: Phase I in 2017, Phase II in 2018
In October 2013, the national oil company (NOC) Saudi Aramco selected Foster Wheeler to perform the front end engineering and design (FEED) work of the compression stations for the Master Gas System Expansion (MGSE) project. To be implemented in phases, the Master Gas System Expansion project is vital for Saudi Arabia to support the development of its non-associated gas, unconventional gas and related condensate reserves. With 285 trillion cubic feet (tcf) of proved reserves of natural gas, Saudi Arabia ranks among the top five countries in the word.In practice Saudi Arabia is using expensive crude oil to feed power plants and naphtha crackers wherever it cannot provide competitive gas supply. From the 2011 production of 3.5 tcf of natural gas, Saudi Aramco is aiming at doubling it by 2030 including the compensation of the maturing fields depletion. In that purpose, Saudi Aramco designed the first phases of the Master Gas System (MGS) crossing the country from Yanbu on the Red Sea to Shedgum in passing by Ryadh.
Now Saudi Arabia is willing to speed up the conversion of number of power plants from oil to natural gas. In that perspective Saudi Aramco is extending the existing Master Gas System to the Western Province in order to supply the power plants located there. Therefore the Master Gas System Expansion project phase-1 should include:
- 500 additional kilometres of pipelines
- Two gas compression stations
- Offsite and Utilities
Estimated to require US$1.65 billion capital expenditure, this first phase of the Master Gas System Expansion project should provide immediate return to Saudi Aramco by the savings made on the crude oil being replaced by the natural gas. As soon as Foster Wheeler will have completed its FEED work on the compression stations, Saudi Aramco will award the engineering, procurement and construction (EPC) contract for this first phase of the Master Gas System Expansion project to come on stream in 2017.
Operators:
Saudi Aramco: Operator with 100% interest
Contractors:
Foster Wheeler: Contract to perform the front end engineering and design (FEED) work of the compression stations for the Master Gas System Expansion (MGSE) project
Saipem: EPC contract for the Loops 4 & 5 of the Shedgum-Yanbu’ Gas Pipeline, linking Shedgum to Yanbu
Shandong Electric Power Construction Corp. (SEPCO): US$1.3 billion contract for two booster gas compression stations
GE Oil & Gas: Contract to manufacture and assist with the commissioning and start-up of 12 high-efficiency gas compression trains, each consisting of an aeroderivative gas turbine and a pipeline centrifugal compressor, for the Master Gas System Expansion Project
Saudi KAD: The engineering, procurement, construction, and commissioning contract for pipelines associated with Master Gas Program Phase II expansion. (September, 2016)