A Sinopec service unit announced on Thursday that it has signed a 7.956 billion yuan ($1.1 billion) contract with Saudi Aramco to construct natural gas pipelines. Sinopec Oilfield Service Co. will procure and construct the third phase of the Master Gas System in Saudi Arabia. Under this deal, Sinopec will build a pipeline grid comprising 2,630 km of trunk lines and 1,340 km of branch lines as part of Aramco’s initiative to expand gas distribution across the Kingdom. The construction is expected to be completed by the end of May 2027.
Earlier this year, Aramco awarded over $3.3 billion in contracts to Sinopec and Spain’s Tecnicas Reunidas for building a gas facility in Saudi Arabia. According to a disclosure on the Spanish Stock Exchange, Sinopec will own 65% of this project, with Tecnicas Reunidas holding the remaining 35%. The contract includes developing a new facility called Riyas natural gas liquids at the Jafurah unconventional gas production project. It covers engineering, procurement, and construction, including building liquefied natural gas distillation facilities, storage, and export facilities. The Jafurah Gas Field, according to Aramco, contains an estimated 200 trillion standard cubic feet of natural gas, making it the largest discovery of its kind in the Middle East. Aramco has described the development as “one of the most ambitious projects in Aramco’s history.”