A unit of Sinopec has announced a significant deal valued at 7.956 billion yuan to construct natural gas pipelines for Saudi Aramco. The agreement entails Sinopec Oilfield Service Co. undertaking the procurement and construction tasks for the third phase of Saudi Arabia's Master Gas System. This ambitious project involves the establishment of a comprehensive pipeline network, comprising trunk lines spanning 2,630 kilometres and branch lines extending 1,340 kilometres, aligning with Aramco's strategic initiative to bolster gas distribution across the Kingdom.
Sinopec is committed to completing the construction by the end of May 2027, marking a pivotal milestone in their partnership with Aramco. This collaboration follows earlier contracts awarded by Aramco, totalling over $3.3 billion, to Sinopec and Spain's Tecnicas Reunidas for the construction of a gas facility within Saudi Arabia. As per disclosures on the Spanish Stock Exchange, Sinopec will hold a majority stake of 65% in the project, with Tecnicas Reunidas securing the remaining 35%.
Part of this expansive project includes the development of the Riyas natural gas liquids facility as part of the Jafurah unconventional gas production venture in Saudi Arabia. The contracts encompass various aspects such as engineering, procurement, and construction, including the establishment of liquefied natural gas distillation facilities within the Al-Riyas project, along with provisions for storage and export facilities.
Aramco's Jafurah Gas Field, housing an estimated 200 trillion standard cubic feet of natural gas, represents a monumental discovery in the Middle East. Described by the energy giant as one of its most ambitious endeavours to date, the development underscores Aramco's commitment to advancing the region's energy landscape. Through strategic collaborations and forward-thinking projects like these, Aramco and its partners are poised to play a pivotal role in meeting the growing demand for clean and sustainable energy solutions both domestically and globally.