Chinese Firm Wins $40 million New Saudi Power and Gas Contracts
Ningxia Power Construction, a Chinese Firm, has secured another milestone in Saudi Arabia’s rapidly expanding energy infrastructure market, winning contracts covering the third phase of Saudi Aramco’s Master Gas System (MGS-III) and the first phase of a 380kV transmission line serving the Red Sea Aluminium project.
The latest awards come as Saudi Arabia accelerates investment in natural gas, power transmission and industrial infrastructure under Vision 2030.
Image source: meed.com
August 4, 2026 - According to MEED, the awards further strengthen the growing role of Chinese EPC contractors in supporting Saudi Arabia’s industrial diversification and long-term energy transition strategy. [1]
These contracts, with a combined value of $40 million, cover two separate projects in Saudi Arabia. [2]
One supports Saudi Aramco’s multibillion-dollar expansion of its natural gas pipeline network, which spans approximately 4,150 kilometers and is expected to transport up to 15 billion standard cubic feet of gas per day by 2028.
The MGS-III expansion is one of Saudi Aramco’s flagship midstream programmes, designed to significantly increase the Kingdom’s gas transportation capacity while supplying cleaner fuel to power generation, petrochemical complexes and emerging industrial clusters.
Earlier phases of the programme have already attracted multi-billion-dollar EPC contracts, reflecting Aramco’s commitment to expanding domestic gas utilisation and reducing crude oil consumption in electricity generation. [3]
The other contract covers the power infrastructure for the Red Sea Aluminium project, a Public Investment Fund-backed joint venture located in Yanbu.
The transmission project awarded for the Red Sea Aluminium development is equally significant. Reliable 380kV grid infrastructure will provide the high-voltage electricity required for one of Saudi Arabia’s future energy-intensive industrial projects. Aluminium production depends on stable and large-scale power supply, making transmission networks a critical foundation for downstream manufacturing and export competitiveness.
The contract awards also illustrate the increasing competitiveness of Chinese contractors in the Middle East. For China, the projects further deepen industrial cooperation under the Belt and Road Initiative while reinforcing Chinese EPC firms' reputation in one of the world's most competitive infrastructure markets.
Successful execution could create additional opportunities in future gas compression facilities, transmission networks, hydrogen infrastructure and renewable energy projects as Saudi Arabia continues implementing Vision 2030.
References
[1]https://www.meed.com/chinese-contractor-wins-saudi-power-and-gas-contracts
