Al-Khobar – Saudi Aramco announced that it will complete the first phase of an expansion of the main gas pipeline across the Kingdom of Saudi Arabia by the end of this year.
The company said in its weekly magazine, the Arabian Sun, that the expansion came in an effort to meet the kingdom’s rising gas demand.
Master Gas System (MGS) was built in the mid-1970s to gather and process associated gas from oil wells for domestic industry.
Saudi Arabia, world’s top oil exporter, is pressing on with gas-related projects to meet demand and save crude for export and refining.
The main objective of this vital project is to maintain business continuity and fulfill demand, as the project will enable the company to meet its commitment to supply sales gas to King Abdullah Economic City (KAEC) and the Rabigh-2 IPP.
The project will also boost the Kingdom’s economy by displacing the burning of crude oil with sales gas.
“The first phase will be completed by the end of 2017, increasing the capacity of the MGS to 9.6 billion standard cubic feet per day (scfd). The second phase will bring that capacity up to 12.5 billion scfd in 2019,” Saudi Aramco said.
The first phase of the pipeline was due to be completed by the end of 2016, with phase two finished by 2018, previous reports said.
Saudi Aramco plans to nearly double its gas production to 23 billion standard cubic feet per day over the next decade.
The plans include boosting output at its Hawiyah and Haradh plants estimated to cost $4 billion.
The projects would expand processing capacity at Hawiyah, which now processes 2.5 billion scfd of gas, by 1.3 billion scfd.