Sinopec secures $1.1bn gas pipeline contract from Aramco

Sinopec's subsidiary will deliver engineering, procurement and construction services for 696km of the long-distance natural gas pipeline.

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Sinopec Oilfield Service, a unit of Chinese oil company Sinopec, has received a 7.95bn yuan ($1.1bn) contract with Saudi Aramco to construct natural gas pipelines in Saudi Arabia.  

Sinopec Oilfield Service’s subsidiary, Sinopec Oil Engineering and Construction Corporation will be responsible for building parts of the third phase of the Master Gas System (MGS) project.  

Phase 3 of the MGS project involves a 2,630km main natural gas pipeline and a 1,340km sales pipeline.  

Sinopec’s unit is tasked with providing engineering, procurement, and construction services for 696km of the long-distance natural gas pipeline and its ancillary facilities.  

The construction is expected to be completed by the end of May 2027. 

This development follows Baker Hughes‘ announcement in April that it had secured a contract to supply equipment for the same phase of Aramco’s MGS project.  

Earlier this week, it was reported that Aramco is in talks about possible investments in two different liquefied natural gas (LNG) projects with US companies Tellurian and NextDecade. 

Aramco is exploring the acquisition of a stake in Tellurian’s Driftwood LNG plant in Louisiana, which boasts a capacity of 27.6 million tonnes per annum.  

Concurrently, Aramco is discussing a long-term gas purchase from NextDecade’s Rio Grande LNG project in Texas.  

The talks aim to enhance the Saudi Arabian Government-backed company’s gas production and trading capabilities.  

Last month, Abu Dhabi National Oil Company acquired an 11.7% stake in the first phase of the Rio Grande LNG project from Global Infrastructure Partners’ investment vehicle. 

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