State oil giant Saudi Aramco has awarded a major contract to Saudi KAD, a leading engineering, procurement and construction (EPC) company, for its strategic pipeline projects related to the Master Gas Programme Phase II, and the Fadhili Gas Programme.

When the project gets completed in 2018, the Master Gas System capacity will increase to 12.5 billion standard cu ft per day.

The scope of work includes engineering, procurement, construction and commissioning of a pipeline network totalling 1,118 km in length.

These vital pipelines will significantly expand Saudi Aramco's capabilities for delivering sales gas to power plants and petrochemical facilities throughout the kingdom.

The pipeline sizes will vary, with the biggest diameter reaching 56 inches and extending over a distance greater than 1,000 km.

The scope also includes EPC work for valve stations, metering systems, launcher and receiver stations, fibre-optic cables, as well as road and rail crossings, said the statement from Aramco.

Saudi KAD is already engaged in executing Saudi Aramco's Onshore Maintain Potential Programme.

The four new contracts awarded by the Saudi oil giant under the Master Gas Programme Phase II and the Fadhili Gas Programme will further strengthen its existing relationship with Saudi KAD.

Ahmad Al Jabr, the chairman of Saudi KAD, said: "We are deeply honoured by the trust placed in us by Saudi Aramco's award of these strategic projects. It clearly demonstrates Saudi Aramco's commitment towards supporting and growing national contractors for the greater benefit of our national economy."

"Saudi KAD will reciprocate this trust through meeting every commitment on the awarded projects, and continuing to pursue our aggressive localisation agenda," he stated.

Saudi KAD said all aspects of these projects will be executed in Saudi Arabia, as further evidence of its commitment towards local investment.

The EPC will be performed totally in-kingdom, thereby positioning Saudi KAD as the first fully-integrated Saudi EPC contractor.

Moreover, Saudi KAD will aim to achieve ambitious Saudisation targets for its construction workforce, focusing on core skills such as welding, pipe fabrication and pipe fitting, it added.-TradeArabia News Service