Gas Arabian Services Company (GAS) has received two non-binding letters of intent (LoIs) from Saudi Aramco, the world’s largest oil producer, for engineering, procurement, and construction (EPC) contracts at a combined value of 760.86 million Saudi riyals ($202.87 million).

The first EPC contract of the Master Gas System (MGS) network expansion from Shedgum to East-West Pump Stations-1 is valued at SAR 344.61 million, while the other MGS expansion in the East and Qassim cluster will cost SAR 416.25 million, the company said in two separate statements to the Saudi stock exchange on Tuesday.

The LoIs are valid for 90 days from the signing date, subject to the execution of a final written contract between GAS and Aramco.

Saudi Aramco is working on a two-phase plan to expand its MGS, built in the mid-1970s, to gather and process associated gas from oil wells for domestic industry.

(Writing by D Madhura; Editing by Anoop Menon)


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