Arkad has entered into a facility agreement worth US$54 million with Arab Petroleum Investments Corporation (APICORP).
The contract provides financing in the form of funded and unfunded facilities, which will support Arkad’s construction of Package 2 of the Master Gas System (MGS) in Saudi Arabia.
The MSG is a national project to develop the country’s non-associated gas, unconventional gas and related condensate reserves, raising the system’s capacity from 239 million m3 to 354 million m3 of gas per day.
Package 2 of the project includes the construction of 226 km, 46 inch (1,168 mm) diameter pipeline on the East–West Qassim Gas Pipeline.
The project will deliver gas to the western region of Saudi Arabia, including King Abdullah Economic City, Rabigh Refining and Petrochemical Company and other power plants.
“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,” said Arkad Board Member Hani Abdulhadi.
“Arkad has had an excellent year, winning new contracts and continuing to expand internationally through our acquisition of the engineering, procurement and construction 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.”
For more information visit the Arkad website.
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