Saudi Aramco Finalizes $25 Billion Contracts to Expand Master Gas System Network

Saudi Aramco has finalized major engineering, procurement, and construction (EPC) contracts valued at more than $25 billion for the third phase expansion of its Master Gas System (MGS-3). The monumental pipeline infrastructure initiative represents one of the largest gas transmission developments ever undertaken in the global energy sector.

Under the awarded packages, Aramco will construct approximately 4,000 kilometers of high-pressure pipeline and establish 17 new gas compression trains across Saudi Arabia. The expansion will boost total network transmission capacity by over 3.15 billion standard cubic feet per day, connecting previously underserved western and central regions to domestic gas fields.

Historic Infrastructure Expansion Connects Kingdom's Industrial Heartlands

Originally established in the late 1970s, the Master Gas System historically captured flared associated gas to fuel the Kingdom's industrial dawn in Jubail and Yanbu. The latest MGS-3 phase modernizes and interconnects the domestic grid, accommodating substantial production growth from unconventional gas fields including the giant Jafurah basin.

Aramco executive leadership stressed that the expansion acts as a vital catalyst for national decarbonization and industrial diversification, supplying cleaner-burning methane to desalination plants, heavy manufacturing complexes, and high-efficiency power stations.

“Expanding our Master Gas System network is fundamental to diversifying the Kingdom's energy mix, reducing domestic crude burning, and unlocking extensive industrial growth.” — Amin H. Nasser, President and CEO of Saudi Aramco

Strategic Energy Transition Displaces Crude Oil Burning in Domestic Utilities

The displacement of crude oil and heavy fuel oil in domestic power generation forms a core pillar of Saudi Arabia's National Renewable Energy Program and Vision 2030 climate goals. By substituting gas for liquid hydrocarbons, the Kingdom aims to free up hundreds of thousands of barrels of crude per day for high-value export while lowering power-sector emissions.

International contracting consortiums from South Korea, China, India, and Europe secured key construction packages alongside prominent Saudi contractors. Slated for phased completion by 2028, MGS-3 establishes the foundational energy backbone required to sustain the Kingdom's rapidly diversifying economic landscape.

Sources

• Saudi Aramco
• Saudi Press Agency