Saudi Aramco, China’s SEPCO ink gas booster deal: report

China’s Shandong Electric Power Construction Corp. (SEPCO) has signed a contract with Saudi Arabian Oil Co. (Saudi Aramco) to build a gas compressor station designed to expand the main gas pipeline in the kingdom, Reuters reported, citing unnamed industry sources.

The value of the contract is estimated to be around $700 million to $800 million, the sources added.

The project, known as Master Gas System 2 (MGS2) will raise the network’s capacity to 12.5 billion cubic feet of gas a day (cfd) by 2018 from the current 8.4 billion cfd.

SEPCO is said to be constructing the first phase of the expansion of the project which is scheduled to be completed by the end of next year.