POWERCHINA signs expansion project of MGS gas boosting station

Updated: April 25,2024

POWERCHINA signed the EPC (engineering, procurement, and construction) general contract for the phase III expansion project (Lot 2) of the MGS gas boosting station with Saudi Arabian Oil Company (Saudi Aramco) on April 24. This marked POWERCHINA's seventh successful bid for a project with Saudi Aramco and POWERCHINA's complete coverage of all three phases of the MGS gas boosting station.

The MGS system operated by Saudi Aramco is the largest natural gas gathering and processing system in the world today. Since it was built in 1982, it has become the backbone of the Saudi industrial economy.

The project is part of the expansion project of the east-to-west gas pipeline in Saudi Arabia, involving the construction of a new Station (including 10 compressor units) and related facilities, with a duration of approximately 48 months.

Upon completion, the pipeline's daily gas transmission capacity will increase from 12 billion cubic feet to 17.5 billion cubic feet, fully meeting the gas demand for the development of the King Abdullah Economic City in western Saudi Arabia and several large gas-fired power plant projects.

This will also significantly reduce the use of oil energy in the western economic belt, which is vital for promoting economic development in western Saudi Arabia, enhancing Saudi Arabia's oil export capacity, and improving the country's environment.