Saudi Aramco has awarded a letter of intent (LOI) to India's Kalpataru Projects International Limited (KPIL) for the EPC work on a major gas project.  

The LOI is for the third expansion phase of the MGS (MGS-3) in Saudi Arabia.  

KPIL said the scope of the EPC work involves laying more than 800km of lateral gas pipelines, with the contract value to be confirmed upon execution. 

The MGS-3 expansion is designed to enhance the existing gas network, ensuring a steady gas supply to various industrial consumers in the region.  

According to Aramco, the MGS currently comprises 3,850km of pipelines in service, ready for commissioning, or decommissioned, with an additional 1,075km under construction.  

KPIL, with around two decades of experience in cross-country pipelines and other related infrastructure, is said to have commissioned more than 10,000km of pipelines in the oil, gas and water sectors. 

KPIL MD and CEO Manish Mohnot said: “We are delighted and truly proud to be entrusted by Aramco to undertake EPC work for the MGS‐3 project. This is a sizable EPC order, representing a significant milestone and reaffirmation of global acknowledgement of our capabilities. KPIL is focused on strengthening its presence in the oil and gas market in the Middle East region over the past few years.  

“This order serves as a resounding testament to our commitment to strengthen our presence acrossthe value chain in the global oil and gas EPC business. Moreover, this large order will strengthen our order book profile and put our oil and gas business on a robust growth trajectory going forward.”   

Last week, Aramco expanded its global footprint by completing the acquisition of a 100% equity stake in Esmax Distribución (Esmax) from the Southern Cross Group.  

Esmax, a Chilean downstream company, is involved in fuel and lubricant retailing, marking Aramco's entry into the South American downstream retail market.