Page 5 - MEOG Week 49 2021
P. 5
MEOG COMMENTARY MEOG
An additional expansion phase was due to be an indication of timeframe, suggesting a max-
completed in 2019, taking total capacity to 12.5 imum state budget allocation of $1.6bn owing
bcf (354 mcm) per day through an additional to investments from other companies. “At least
1,600 km of pipelines to increase gas supplies to 17 entities are participating and working in this
the Red Sea coast. However, articles on the Ara- programme, including Saudi Aramco, SABIC,
mco website in October 2020 said that the “next SEC, ACWA Power and companies from the
phase” remained under construction, noting the chemical sector,” he said.
addition of 821 km of new pipelines, just over Prince Abdulaziz added that “all industrial
half the amount predicted when it released its cities and factories in Al-Qassim, Al-Kharj and
2017 annual report. Sudair will be provided with gas. Saudi Aramco
According to Aramco, “the total length [of] will continue expanding its gas exploration pro-
pipeline in service, ready for commissioning, grammes to provide huge quantities of gas to
or decommissioned, is 3,850 km, and pipelines cover the needs of all the cities across the King-
under construction total an additional 1,075 dom.” Meanwhile, he noted that more gas would
km.” be made available for the port of Ras al-Khair
Despite Aramco not having yet completed north of Jubail, where Aramco is building a
the ongoing expansion, Saudi Energy Minister major offshore and maritime services hub.
Prince Abdulaziz bin Salman has announced Broader expansion of the MGS is also to link
plans in late November to increase its capacity up with integrated gasification combined cycle
further. (IGCC) power plants in Shuaibah near Jeddah
Speaking during the ceremony to launch and, eventually, Jazan, where Aramco, ACWA
the commercial development of the Jafurah gas Power and Air Products recently finalised a
field, he said that the MGS would be expanded $12bn investment to build an air separation,
to 16.1 bcf (456 mcm) per day without giving gasification and power facilities.
Source: Aramco IPO
Prospectus
Week 49 08•December•2021 www. NEWSBASE .com P5
