Infrastructure
Kalpataru International Secures 800 Km Gas Pipeline Contract With Aramco, Expanding Indian Infrastructure In Saudi Arabia
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In a significant boost to the order books of Indian infrastructure firms in Saudi Arabia, Kalpataru Projects International Limited (KPIL) announced on Tuesday (5 march) that it has secured a contract from Saudi Arabia's energy giant Aramco, for laying 800 kilometres of gas pipelines.
The company has received the letter of intent (LoI) from Aramco for carrying out engineering, procurement, and construction works for three packages of the third phase expansion of the Master Gas System Network (MGS-3) in Saudi Arabia.
MGS-3 project aims to expand the existing gas network to supply gas to various industrial consumers. This expansion is expected to enhance Aramco's ability to meet the growing energy demand in Saudi Arabia and replace liquid fuel burning, contributing to Saudi Arabia's drive towards a diverse energy mix.
The EPC scope covers laying of over 800 km of lateral gas pipeline, KPIL said, adding that the exact contract value of the project will be confirmed upon contract execution.
KPIL joins the list of Indian companies bolstering their footprint in the oil and gas market in the Middle East region in recent years.
Many Indian companies are also playing a large role in the development of Saudi Arabia's Vision 2030, especially for projects in NEOM, the urban area being built in the country.
In January 2024, East Pipes Integrated Company for Industry (EPIC), an associate company of Welspun Corp, received orders to supply steel pipes to Saline Water Conversion Corporation worth Rs 2,200 crore, steel pipes supply to Aramco worth Rs 339 crore and order for double jointing and coating of steel pipes to Aramco of Rs 377 crore.
Similarly in December 2023, Larsen & Toubro was awarded an EPC contract for the establishment of renewable energy generation, power utilities, and water systems for the Amaala project in the Red Sea region, Saudi Arabia.
Amaala is an ultra-luxury tourism destination spanning 4,155 sq km, situated in the Prince Mohammed bin Salman Natural Reserve along Saudi Arabia’s northwestern coast.
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