Time: July 23, 2018
Arkad, a leading Saudi engineering, and construction company have signed a facility agreement worth up to SR202.65 million ($54 million) with Arab Petroleum Investments Corporation (Apicorp), the multilateral development bank.
The facility is intended to support Arkad’s construction of the Master Gas System (Package 2), a project in Saudi Arabia. The facility will mature in the first half of 2019. The MGS national project is intended to support the development of Saudi Arabia’s non-associated gas, unconventional gas, and related condensate reserves.
Once completed, the project will raise the system’s capacity to 12.5 billion cu ft of gas per day (CFD) from 8.4 billion CFD currently. It will help deliver gas to the western region, including the King Abdullah Economic City, Rabigh Refining & Petrochemical Company (PetroRabigh) and certain other power plants.
Package 2 for the Central Region entails the installation of 226 km of 46-inch (1,168-mm) pipeline on the East-West Qassim Gas pipeline 1 with a total value of SR826.45 million. The contract is expected to be complete by December 2018.
Hani Abdulhadi, a board member of Arkad, said: “Today we are delighted to announce that we have entered into this partnership with Apicorp. The contract signed today is unique as it is the first Apicorp loan provided directly to finance a contract, which is a positive sign for Arkad but also the wider industry.
“Arkad has had an excellent year, winning new contracts and continuing to expand internationally through our acquisition of the EPC business of ABB. This loan agreement is another positive step for the business, and allows us to compete on the very best projects throughout Saudi Arabia.”
Dr. Ahmed Ali Attiga, chief executive of Apicorp, said: “The loan facility agreement signed with Arkad affirms Apicorp’s confidence in Arkad. Supporting investment such as this in the development of Saudi Arabia’s energy infrastructure is exactly in line with Apicorp’s mandate: not only does it support the Kingdom’s long-term objectives with regard to a more diversified energy mix, it also contributes to job creation and better living standards for the Saudi population.” – TradeArabia News Service
This article was first published in Trade Arabia
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