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SEPCO Set to Win Saudi Gas Project

SEPCO Set  to Win Saudi  Gas ProjectSEPCO Set  to Win Saudi  Gas Project

China's Shandong Electric Power Construction Corp., known as SEPCO, will likely win a contract to help boost the capacity of the main gas pipeline across Saudi Arabia, industry sources said. Last year, SEPCO won the first phase of the master gas system, which is due to be completed by the end of 2016. It will boost the capacity of MGS to more than 270 million cubic meters of gas a day from 237 mcm/d, state-owned oil company Saudi Aramco said. Under the new project called MGS 2, SEPCO will build a gas compressor station, industry sources said, increasing its capacity to 353 mcm/d by 2018. MGS was built in the mid-1970s to gather and process associated gas from oil wells and use it for domestic industries. There was no clear value for the contract, but a second industry source said SEPCO's price was below $700 million while a third said it was under $800 million.

 

Financialtribune.com