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Home Free ArticlesConstruction Aramco Awards $12 Billion Gas Project to Chinese Contractor CPECC

Aramco Awards $12 Billion Gas Project to Chinese Contractor CPECC

by Sherin Shahanaz
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In a significant development for the Kingdom’s natural gas infrastructure, Aramco has selected the China Petroleum Engineering and Construction Corporation (CPECC) for a crucial contract. This award marks a pivotal step in the expansion and enhancement of the Master Gas System Network (MGS-3), which is part of Aramco’s broader efforts to bolster the country’s energy capabilities.

Aramco has officially announced the selection of winners for up to 15 engineering, procurement, and construction (EPC) packages associated with the third phase of the multibillion-dollar MGS-3 project. The contract awarded to CPECC is valued at approximately $1.699 billion, contributing to an overall investment exceeding $12 billion for the entire MGS-3 initiative.

CPECC secured its position as the preferred contractor by successfully outperforming a competitive field of 10 bidders, which included notable companies such as Shandong Electric Power Construction Company from China and Turkey’s Mapa. The company’s robust commercial and technical proposals played a critical role in its selection.

The scope of work for CPECC includes the EPC responsibilities for the expansion of three booster stations, along with the establishment of necessary supporting facilities. This strategic project is designed to enhance the supply of natural gas to a variety of industrial sectors across the region, underscoring Aramco’s commitment to strengthening its energy infrastructure.

The completion of this ambitious project is projected for June 2028, marking a significant milestone in the Kingdom’s ongoing efforts to optimize its natural gas resources and meet increasing industrial demands.

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