meed-logo

line1 line2 line3
SIGN IN / REGISTER

Frontrunner emerges for Master Gas System package

6 August 2024

Register for MEED's 14-day trial access 

Netherlands-headquartered A Hak has emerged as the frontrunner to win the contract for package 9 of Saudi Aramco’s third expansion phase of the Master Gas System network (MGS-3) in Saudi Arabia.

MEED recently reported that A Hak submitted the lowest bid for MGS-3 package 9, followed by Turkish firm Mapa Group. A consortium of Germany’s Max Streicher and locally-based National Basics Company was said to have offered the third-lowest bid.

“Aramco is close to awarding package 9 to A Hak,” one source said. “Negotiations between Aramco and the other bidders are understood to have completed now.”

Contractors submitted revised commercial bids for the package by the deadline of 26 May, MEED previously reported.

The original scope of work on package 9 mainly involves engineering, procurement and construction (EPC) of a 56-inch pipeline covering 458 kilometres from booster gas compression station 10 to sector 1 STS-2.

The estimated $10bn MGS-3 project consists of 17 EPC packages. The first two packages involve upgrading existing gas compression systems and installing new gas compressors. The 15 other packages relate to laying gas transport pipelines at various locations in the kingdom.

Aramco received technical bids for the 15 pipeline packages of the MGS-3 project, including package 9, during the third and fourth weeks of August last year. Contractors submitted commercial bids for the pipeline packages during the last two weeks of September, MEED reported.

While Aramco selected contractors for 14 EPC packages of the MGS-3 project in February this year, prices submitted by bidders for package 9 are understood to have “exceeded Aramco’s budget”, sources previously said.

This is understood to be the main reason Aramco sought revised commercial proposals for the package, adding that the scope of work on the package has also been modified.

MGS-3 EPC packages

On 30 June, Aramco officially awarded 15 lump-sum turnkey contracts for the MGS-3 project, worth $8.8bn.

The expansion, being conducted in collaboration with the Saudi energy ministry, will increase the size of the network and raise its total capacity by an additional 3.15 billion standard cubic feet a day (cf/d) by 2028, through the installation of about 4,000km of pipelines and 17 new gas compression trains, Aramco said in a statement.

Aramco selected the following contractors for 15 of the 17 EPC packages of the estimated $10bn MGS-3 project, MEED reported in February:

  • Package 1 – China Petroleum Engineering & Construction Company (China)
  • Package 2 – Sepco (China)
  • Packages 3 and 12 – Gas Arabian (Saudi Arabia)
  • Package 4 – Mapa (Turkiye)
  • Package 5 – Bin Quraya (Saudi Arabia)
  • Packages 6 and 7 – Sinopec Petroleum Services (China)
  • Package 8 – Larsen & Toubro Energy Hydrocarbon (India)
  • Packages 10 and 14 – Nesma & Partners (Saudi Arabia) / Sicim (Italy)
  • Package 11 – Max Streicher (Germany) / National Basics Company (Saudi Arabia)
  • Packages 13, 15 and 17 – Kalpataru Projects International (India)

Meanwhile, package 16, originally part of the tendering process for the MGS-3 project, has been carved out as a separate tender by Aramco. Contractors submitted proposals for this package by the deadline of 28 July.

The original Master Gas System (MGS) was built in the 1970s and commissioned in 1982. Since then, Aramco has been supplying natural gas to its customers across Saudi Arabia via the network, mainly channelling associated gas from Ghawar and other oil fields.

Over the past decade, amid rising gas demand from Saudi Arabia’s industrial and household sectors, Aramco has undertaken projects to increase its non-associated gas production. In 2015, it launched the second expansion phase of the MGS (MGS-2).

Local contractor Arkad Engineering & Construction won the three main pipeline packages of MGS-2, worth an estimated $1.3bn, in early 2016.

EPC works were completed in 2021, increasing the MGS network’s gas handling and transport capacity from 8.4 billion cf/d to 12.5 billion cf/d.

ALSO READ: Aramco tenders Jafurah fourth expansion phase

https://image.digitalinsightresearch.in/uploads/NewsArticle/12286082/main5505.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Mace confirms Muscat cultural complex appointment

    3 September 2026

    UK-headquartered engineering firm Mace Consult has confirmed its appointment to manage the construction of the Sayyid Tarik Bin Taimur Cultural Complex in the Al-Seeb area of Muscat.

    The firm will provide project leadership, programme management, commercial oversight and delivery assurance services.

    The complex will be developed on a 400,000-square-metre (sq m) site. Centred on an urban plaza, it will bring together a range of cultural and institutional facilities.

    These include a 23,000 sq m national library, a 15,500 sq m national archives, four facilities buildings with a combined area of 14,000 sq m, and a 5,000 sq m energy and data centre.

    At the heart of the development is the national theatre, which will include a 1,000-seat auditorium and a 250-seat auditorium. The facilities will sit within landscaped gardens and water features, alongside a signature canopy structure.

    In October 2023, the Ministry of Culture, Sports & Youth awarded a design-and-build contract for the complex to a joint venture of local firm Saif Salim Issa Al-Harrasi and Turkiye’s Sembol Construction, MEED reported.

    In January 2026, UAE-based steel structure manufacturer Emirates Building Systems, a wholly owned subsidiary of Dubai Investments, won a contract to deliver the project’s structural steel package.

    Last month, Kuwait-based engineering and architecture consultancy SSH was appointed as the project’s construction supervision consultant.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19314737/main.jpg
    Yasir Iqbal
  • Read the September 2026 MEED Business Review

    3 September 2026

    Download / Subscribe / 14-day trial access

    Nuclear energy is becoming an increasingly important part of the GCC’s long-term power strategy, as governments seek to strengthen energy security, diversify generation and meet decarbonisation goals.

    Saudi Arabia’s civil nuclear cooperation deal with the US marks a major step forward for its plans to develop its first commercial nuclear power plant, while rising electricity demand across the region is creating further momentum.

    With the UAE already operating the Middle East’s first commercial nuclear power station, Saudi Arabia targeting up to 17GW by 2040 and Bahrain exploring small modular reactor technologies, our latest Agenda feature examines the growing role of nuclear energy in the GCC’s future power projects pipeline.

    September’s Market Focus turns to Kuwait, where the country’s oil-dependent economy has weathered unprecedented disruption, yet major investment and infrastructure deals point to resilience.

    This edition also includes a downstream industry report, exploring the accelerating investment in gas processing and associated infrastructure across Mena, the major projects driving spending, and the growing focus on NGL recovery, efficiency and higher-value gas products.

    In the latest issue, we speak to Emsteel chief commercial officer Michael Rion about the Abu Dhabi steelmaker’s plans to strengthen its position in domestic and international markets, including the launch of its ES600 steel rebar and the expansion of its long-standing partnership with Adnoc Group.

    We also examine the GCC’s accelerating tunnelling boom, as major metro, sewerage and road projects increasingly move underground. The feature explores the scale of investment, the contractors and technology driving the market, and the challenges facing the region as demand for tunnelling expertise and equipment grows.

    We hope our valued subscribers enjoy the September 2026 issue of MEED Business Review. 

     

    Must-read sections in the September 2026 issue of MEED Business Review include:

    > AGENDA: Gulf nuclear revival takes shape

    INDUSTRY REPORT:
    Downstream
    > Gas processing takes centre stage in Mena region

    > INTERVIEW: Emsteel persists with business productivity and efficiency

    > TUNNELS: The Gulf’s next construction boom is happening underground

    > KUWAIT MARKET FOCUS: 
    > COMMENT: Kuwait keeps dealmaking alive under fire
    > GOVERNMENT: Kuwait shows tentative signs of economic development
    > BANKING: Necessity is the mother of invention for Kuwaiti lenders
    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
    > POWER & WATER: Kuwait utilities investment shifts towards water
    > CONSTRUCTION: Kuwait construction holds up despite regional strife
    > MARKET TALK: Kuwait stands resilient amid regional tensions
    > DATABANK: Kuwait’s economic gains are dented by conflict in 2026

    > MEED COMMENTS: 
    >     Cash is king for Dubai construction
    > Aramco moves apace with Jafurah unconventional gas campaign
    > Neom’s next phase is crucial to green hydrogen pipeline
    > Oman opens door to direct power sales

    > GULF PROJECTS INDEX: Qatar leads gains as Gulf total holds

    > JUNE 2026 CONTRACTS: Middle East contract awards

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: The history of false dawns

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19308287/main.gif
    MEED Editorial
  • Contractors submit bids for Dukhan field facilities upgrade

    3 September 2026

     

    Contractors have submitted bids to QatarEnergy for a key tender to upgrade facilities at the Dukhan oil field in Qatar, about 80 kilometres west of Doha.

    Dukhan, Qatar’s first and only onshore oil field, was discovered in 1938, with oil production starting in 1939-40. The country currently produces about 1.8 million barrels a day (b/d) of crude, with the Dukhan field accounting for about 350,000 b/d of output.

    QatarEnergy issued the tender for the Dukhan production facilities upgrade (DPFU) Phase 1B (Part 2) project on 8 June, and initially set a bid submission deadline of 26 July for contractors, which it later extended to 9 August.

    The following local contractors, among others, are understood to have submitted bids for the DPFU Phase 1B (Part 2) tender, according to information obtained by MEED Projects:

    • Doha Petroleum Construction Company (Dopet)
    • Galfar Al-Misnad Engineering & Contracting
    • Qatar Engineering & Construction Company (Q-con)

    QatarEnergy originally stipulated a bond validity of 150 days (until 23 December) and a bid validity of 120 days (until 23 November) for the project.

    The engineering, procurement, installation and commissioning (EPIC) scope covers upgrades to 56 oil manifolds, 108 gas-lift manifold slots, chemical injection systems and key pumping facilities, along with associated piping, instrumentation, control, electrical and civil works.

    The scope includes demolition of obsolete equipment, degassing station enhancements, and full testing and handover. It also encompasses additional capacity enhancement works under Part 3, mainly the installation of new oil export and produced-water transfer pumps, along with supporting facility modifications.

    The project involves complex interfaces and shutdown-critical activities requiring expertise in live-plant integration.

    The Dukhan oil field extends over an area of about 80km by 8km and consists of four reservoirs: Khatiyah, Fahahil, Jaleha and Diyab. The first three are oil reservoirs. The more recently developed Diyab reservoir contains non-associated gas and is estimated to hold around 2 billion barrels of crude oil reserves. Diyab lies on the southern flank of Dukhan.

    ALSO READ: Frontrunners emerge for Qatar offshore oil field expansion
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19312615/main.jpeg
    Indrajit Sen
  • Oman tenders advisory for 3GW solar IPPs

    3 September 2026

    Nama Power & Water Procurement Company (Nama PWP) has invited bids for legal consultancy services for the development of three 1GW solar independent power projects (IPPs).

    The projects will connect to Oman’s main interconnected system (MIS) and are targeted to reach commercial operation by the second quarter of 2030.

    The bid submission deadline is 10 October.

    The state offtaker has now tendered three separate consultancy contracts for the solar IPPs, including two issued in July.

    The bid submission deadline for the financial and commercial consultancy services tender is 10 September.

    Earlier, on 15 July, a technical advisory tender was issued for the three projects as part of a 4GW programme.

    As MEED reported, the financial advisory tender covers four 1GW solar projects connected to the MIS, also targeting commercial operation by the second quarter of 2030.

    It is understood that bids were submitted for this contract on 26 August.

    Oman Electricity Transmission Company (OETC) had earlier outlined the planned grid connection for four 1GW solar IPPs as part of the sultanate’s renewable energy expansion through 2030.

    The projects are included in OETC’s Five-Year Annual Transmission Capability Statement for 2026-30.

    The first, the 1GW Adam solar IPP, is scheduled for grid integration in 2028 and is further ahead in the procurement process, with Nama PWP issuing a request for qualification for the project in June.

    OETC said it expects the 1GW Al-Kamil 2 solar project to be integrated in 2030 through the planned Sadaf 400kV grid station. The 1GW Dhofar solar IPP and 1GW Mahadha solar IPP are also scheduled for integration in 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19311796/main.jpg
    Mark Dowdall
  • Contractors bid for Abu Dhabi’s Masnouha bridge

    3 September 2026

     

    Contractors submitted bids on 1 September for a contract to build the Masnouha bridge in Abu Dhabi, connecting Masnouha Island to the Abu Dhabi mainland.

    The one-kilometre-long bridge will have three lanes in each direction, with a total width of about 13 metres.

    Abu Dhabi’s Department of Municipalities and Transport (DMT) is the project client.

    The scheme’s current shortlist comprises a bascule configuration and a swing (swivel) alternative, with the client to confirm the final selection.

    The scope also covers substation works, drainage, water and sewerage tie-ins, electrical systems and other associated works.

    Masnouha Island is a coastal island in Abu Dhabi earmarked for long-term development, with plans centred on waterfront residential and leisure uses.

    Its location within the emirate’s island network makes it a potential site for new marine access and supporting transport links.

    In June last year, Abu Dhabi-based real estate firm Eagle Hills signed an agreement with Italy’s Bulgari Hotels & Resorts to develop a new real estate project on Masnouha Island.

    Eagle Hills said the resort will feature 60 rooms, including two Bulgari suites, a Bulgari penthouse and 30 villas. The residential assets include 90 mansions ranging from 1,650 to 2,500 square metres.

    Milan-based architectural firm Antonio Citterio Patricia Viel Architects is the project consultant.

    The project is scheduled to open in 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19305416/main.png
    Yasir Iqbal