October 07, 2008

Aramco to build 585 kilometer long gas pipeline in Saudi Arabia

It is reported that Saudi Aramco has signed a contract with Suedrohrbau Saudi Arabia Ltd for the installation of 585 kilometer of 30 inch natural gas liquids pipeline as part of Saudi Aramco’s project to expand the capacity of its Shedgum Yanbu NGL pipeline.

This contract is the final major contract relating to the Khurais field development a 1.2 million bpd crude oil increment that is part of Saudi Aramco’s program to increase its maximum sustainable crude oil production capacity to 12 million barrels per day by year end 2009.

Mr Al Juwair said that "In addition to providing critical additional expansion to the Shedgum Yanbu pipeline, this project also will inject over USD 500 million into the Saudi economy directly as 70% of the material will be provided by in Kingdom vendors."

The Shedgum-Yanbu Pipeline Expansion Project is part of Saudi Aramco’s ongoing capital investment program that will increase the company’s ability to provide gas as fuel and feedstock to customers throughout the Kingdom. This is particularly critical as the demand for ethane and NGL in Saudi Arabia’s western region increases.