Sinopec Signs $1.10 Billion Deal to Build Natural Gas Pipelines for Saudi Aramco
In a major collaboration, Sinopec Oilfield Service Co. has announced a whopping 7.956 billion yuan ($1.10 billion) deal to construct natural gas pipelines for Saudi Aramco.
The contract entails Sinopec procuring and constructing the third phase of the Master Gas System in Saudi Arabia, marking a significant milestone for the Chinese firm.
The project will see Sinopec building crucial components of the pipeline grid, including trunk lines spanning 2,630 km and 1,340 km of branch lines, aligning with Aramco’s vision to enhance gas distributions throughout the Kingdom.
With an ambitious timeline in place, Sinopec aims to complete construction by the end of May 2027, showcasing their commitment to delivering quality infrastructure within the set timeframe.
Earlier this year, Aramco also inked contracts totaling over $3.3 billion with Sinopec and Spain’s Tecnicas Reunidas to establish a gas facility in Saudi Arabia, further solidifying their partnership in the energy sector.
As per a disclosure on the Spanish Stock Exchange, Sinopec will hold a 65 percent stake in the project, with Tecnicas Reunidas owning the remaining 35 percent, underscoring a balanced collaboration between the entities.
The scope of the contract extends to the development of the Riyas natural gas liquids facility at the Jafurah unconventional gas production project in Saudi Arabia, reflecting a holistic approach towards energy infrastructure development.
Key components of the contracts include engineering, procurement, and construction services, encompassing the establishment of liquefied natural gas distillation facilities at the Al-Riyas project, along with storage and export facilities to support operational needs.
Aramco’s Jafurah Gas Field, housing an estimated 200 trillion standard cubic feet of natural gas, is hailed as the largest discovery of its kind in the Middle East, propelling the region towards energy self-sufficiency and economic growth.
Describing the development as a testament to their commitment to innovation and progress, Aramco labeled the Jafurah Gas Field project as “one of the most ambitious projects in the company’s history,” showcasing their dedication to pioneering advancements in the energy sector.