On April 24th, local time, SEPCO officially signed a $1.5 billion EPC turnkey contract with Saudi Aramco for Phase III (section two) of expansion of the MGS gas booster station. This is the seventh Saudi Aramco project awarded to the company, following the Sabahah combined cycle retrofit of power station, Jazan gas turbine combined cycle power station, and Phase I and Phase II of the MGS gas booster station, King Harbor project, and the power workshop project. The successful execution of contract not only finalizes SEPCO's acquisition of all three phases of the MGS gas booster station project, but also demonstrates Saudi Aramco's strong confidence in and full support of SEPCO for our outstanding fulfillmentcapacities as an EPC turnkey contractor.
The MGS system, operated by Saudi Aramco, stands as the world’s largest natural gas gathering and processing system. Since its establishment in 1982, SEPCO has been a cornerstone of Saudi Arabia's industrial economy. The company is recognized for its efficient and high-quality fulfillment capacities, and Phase I of the MGS project was completed ahead of schedule in December 2017 as well as received the 2017 Project Execution Award from the American Society of Civil Engineers. Phase II of the MGS project was successfully completed in August 2021 and was featured in a special report by CCTV CGTN Arabic Channel. Phase III of the MGS project, as the system's third expansion, has attracted significant attention from the King of Saudi Arabia and Aramco's senior leadership. This project is part of the expansion of the main pipeline for transporting natural gas from eastern to western Saudi Arabia. The scope of work includes constructing a new Station No. 10 (including 10 compressor units) and associated facilities, with an estimated completion time of approximately 48 months. Upon completion, the pipeline will increase its daily gas transmission capacity from 12 billion to 17.5 billion cubic feet, fully meeting the gas requirements for the development and several large-scale gas power plant projects implemented in King Economic City in western Saudi Arabia. This substantial increase will significantly reduce the consumption of oil energy in the western economic belt, thereby playing a vital role in promoting the economic development of western Saudi Arabia, boosting the country’s oil export capacity, and improving its environmental quality.
As one of the earliest power engineering enterprises to enter the international market, in recent years, SEPCO has recently aligned with the nation’s grand vision, seized historic opportunities, and deeply engaged in the joint construction of the Belt and Road initiative. Adhering to a strategy that prioritizes international expansion while maintaining a dual-drive development approach-both internationally and domestically-the company leverages its comprehensive industry chain integration advantage. SEPCO has accumulated extensive experience in fulfilling Aramco contracts and earned high praise from project owners through the successful execution of numerous projects in Saudi Arabia. Up to date, the total value of cooperation contracts between our company and Saudi Aramco has exceeded ten billion US dollars. Our project fulfillment team is committed to enhancing marketing through exemplary on-site performance, with the aim of building excellent projects that set standards and contribute to SEPCO’s efforts in accelerating the construction of a world-class enterprise by POWERCHINA. This dedication aims to further deepen the friendship and cooperation between China and Saudi Arabia, as well as the broader Arab world.
