Page 19 - BAKER HUGHES PR REPORT - APRIL 2024

4/25/24, 8:39 AM Baker Hughes partners in aramco's strategic gas expansion initiative - Oil & Gas Middle East
projects in the coming years.

Baker Hughes also announced that the contract was awarded by Worley, acting on behalf of
aramco, and was officially recorded in the first quarter of 2024, according to reports.

Under the contract, Baker Hughes will deliver 17 pipeline centrifugal compressors powered

by aero-derivative gas turbines for aramco’s 4,000-kilometer pipeline. The company has
described this pipeline as crucial for the country’s energy transition initiatives, aiming to
enhance domestic gas distribution while helping to decrease carbon emissions and reduce

oil consumption.

What is aramco’s MGS project?

The MGS one of the largest hydrocarbon networks in the world, was initially launched in

1982. At first the Berri, Shedgum, and Uthmaniyah gas plants were capable of supplying up
to 2 billion cubic feet per day (56.6 million cubic meters per day) of gas to the network. In
response to the Kingdom’s growing energy demands, aramco has progressively expanded

the MGS by constructing new gas processing plants and facilities. The Hawiyah gas plant,
inaugurated in 2001, was the first to be developed specifically for processing non-associated

gas, followed by the Haradh, Wasit, and Fadhili plants.

Aramco subsequently increased the MGS pipeline and compression capacity with Phase 1,
enhancing gas production capacity to 9.6 billion cubic feet per day (271.8 million cubic
meters per day). The expansion continued with Phase 2 in 2015, which boosted the total

network capacity to 12.5 billion cubic feet per day (353.9 million cubic meters per day) by
adding over 500 miles (805 km) of 56-inch (1422-mm) diameter pipelines along the East-

West corridor and a new gas compression plant.

Notably, this latest contract follows Baker Hughes’ previous supply of 18 centrifugal
compressors for the first two phases of the project.

Additionally, Baker Hughes is expanding its manufacturing site in Modon, Saudi Arabia,

which includes doubling its workforce capacity and enhancing local testing and packaging
capabilities to support projects like this recent contract.

In February, Baker Hughes announced the delivery of the first two trains of advanced

hydrogen compression solutions for the NEOM green hydrogen project, aiming to produce
green ammonia at scale by 2026. This project stands as the world’s largest green hydrogen
initiative.

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