Skip to content Skip to Search
Skip navigation

Aramco awards Sinopec $1.4bn gas pipeline contract

China's Sinopec will work on the third phase of Saudi Aramco’s master gas system Alamy via Reuters
China's Sinopec will work on the third phase of Saudi Aramco’s master gas system

Saudi Aramco has awarded a SAR5.2 billion ($1.38 billion) contract to Chinese state energy major Sinopec to expand its domestic natural gas pipeline.

Sinopec International Petroleum Services Corporation, a wholly-owned subsidiary of Sinopec Oilfield Service Corporation, won the engineering, procurement and construction (EPC) contract for the third phase of Aramco’s master gas system, one of the world’s largest hydrocarbon networks.

Sinopec Oil will implement packages 6 and 7 pipeline projects, undertaking work on the natural gas long-distance pipeline and its ancillary facilities with a total length of 696km.

The work will be completed in 1,275 days.



The proposed length of the natural gas main pipeline will be 2,630km, while the total length of the sales pipeline is expected to be 1,340km, Sinopec said in a statement.

In February, Saudi Aramco selected contractors for EPC works on 16 of 17 programme packages for a $10 billion expansion of the master gas system.

The project involves upgrading existing gas compression systems, installing new compressors and laying pipelines to extend transportation facilities nationwide. 

According to Aramco, the pipeline will boost network capacity to 12.5 billion standard cubic feet of gas per day.

The master gas system, built in the mid-1970s, was designed to transport oil-associated gas from the Ghawar field in Al Ahsa governorate in the Eastern Province, aiding the kingdom’s industrialisation efforts.

Aramco has committed to eliminating most gas flaring, reducing CO2 emissions by 100 million metric tons per year.

The kingdom has shifted its focus to non-associated gas production, with a network expansion accommodating gas from the $110 billion Jafurah development.

Latest articles

More than 24 million people visited the World Expo event at Expo City Dubai between October 2021 and March 2022

Construction begins at Expo City Dubai site

Construction has begun on the first residential properties at Expo City Dubai, part of a mixed-use master plan to repurpose the legacy site after the world fair came to a close two years ago. Master developer Expo City Dubai announced last week that it has awarded four key contracts for its Mangrove Residences. UAE-based USF […]

Saudi housing costs rose nearly 9% year on year in May

Saudi housing costs rise but inflation remains steady

Housing costs in Saudi Arabia rose nearly 9 percent year on year in May, but it was not enough to push overall inflation in the kingdom over 2 percent. The latest data from the General Authority for Statistics showed the annual inflation rate in Saudi Arabia was 1.6 percent in May, having remained at this […]

OTB Group has a presence in Dubai with its Maison Margiela store in the Dubai Mall

Chalhoub Group in venture with Italian luxury brand

Luxury distributor Chalhoub Group has entered into a joint venture with Italian fashion conglomerate OTB Group to expand the brand’s footprint in the Gulf. OTB (which stands for Only The Brave) owns the Diesel, Jil Sander, Maison Margiela, Marni and Viktor&Rolf brands, the Staff International and Brave Kid companies, and holds a stake in the […]

Arid conditions brought about by the drought in Morocco are affecting the cost of sheep

Drought pushes up sheep price for Eid in Morocco

The price for a sheep in Morocco for the annual sacrifice at Eid al-Adha has increased on average at 10 times the 2.2 percent rate of inflation. A medium-sized female sheep costs MAD4000 ($400) as opposed to MAD3000 last year. This puts it out of range for many families in the country where a high […]