Aramco to complete phase 1 of gas grid expansion by year end

Saudi Arabian Oil Co. (Saudi Aramco) is expected to complete phase I of the Master Gas System (MGS) expansion by end of this year to meet the rising local gas demand, the company said in its weekly magazine.

The Master Gas System (MGS) was built in the mid-1970s to gather and process associated gas from oil wells for domestic industry.

The pipeline expansion project will help deliver gas to the western region, including the King Abdullah Economic City and the Rabigh 2 independent power plant.

"The first phase will be completed by the end of 2017, increasing the capacity of the MGS to 9.6 billion standard cubic feet per day (scfd). The second phase will bring that capacity up to 12.5 billion scfd in 2019," Saudi Aramco said in its Arabian Sun magazine.

Phase 1 was due to be completed by end of 2016, with phase two finished by 2018 as was previously reported.

Saudi Aramco plans to nearly double its gas production to 23 billion standard cubic feet per day over the next decade.

The plans also include boosting output at its Hawiyah and Haradh plants. The projects, estimated to cost $4 billion, would expand processing capacity at Hawiyah by 1.3 billion scfd. Hawiyah gas plant now processes 2.5 billion scfd of gas.