Al Gharbia Pipe Company commences commercial production
The UAE’s first large-diameter, sour service capable, welded steel pipe project with a Dh1.1bn investment
SENAAT (“SENAAT” or “the Group”), one of the largest industrial investment holding companies in the UAE, today announced that Al Gharbia Pipe Company has reached an operational milestone by commencing commercial production of large diameter, high-quality sour grade steel pipes in Abu Dhabi.
Al Gharbia Pipe Company – a subcontractor of Habshan Trading – will begin work to supply conductor pipes for Hail and Ghasha offshore sour gas fields by Abu Dhabi National Oil Company (ADNOC).
Established as a joint venture between SENAAT and two of Japan’s leading companies in the steel sector – JFE Steel Corporation and Marubeni-Itochu Steel, Al Gharbia Pipe Company is the first industrial joint venture to take place between Abu Dhabi and Japan in the UAE that will strengthen the rich history of commercial projects connecting the two nations.
The 200,000-square meter plant, which broke ground in Khalifa Industrial Zone Abu Dhabi (KIZAD) in 2016, is the UAE’s first large-diameter, sour service capable, welded steel pipe project that has been set up with an AED 1.1 billion investment to strengthen the country’s industrial supply chain in line with Abu Dhabi Economic Vision 2030 and Abu Dhabi Industrial Strategy 2021.
Eng. Aqeel Abdulla Madhi, Chairman of Al Gharbia Pipe Company, said: “The successful commencement of production and the first order awarded by ADNOC at Al Gharbia Pipe Company demonstrates our commitment to local production of high-quality steel pipes. For the first time, this is being done on a commercial scale, at the state-of-the-art facility, to meet the growing demand arising from the regional industrial sectors including oil and gas, construction and transport. The project further strengthens the UAE’s industrial capabilities and the Made-in-UAE brand, while helping reduce dependence on sour grade steel pipes import and reinforcing the country’s export potential, creating jobs and business opportunities.”
“As Abu Dhabi moves towards realizing its Vision 2030, the industrial sector remains at the heart of this country’s plan for economic diversification and growth and SENAAT will continue to play a vital role in driving forward this mandate,” H.E Eng. Aqeel Abdulla Madhi added.
Commenting Eng. Jamal Salem Al Dhaheri, CEO of SENAAT, said: “This is a major achievement for the Al Gharbia project, and we are very proud of the immense contribution everyone has made to reach this important milestone. Al Gharbia is a game-changing initiative for developing a vibrant industrial sector that further strengthens the Emirate’s economic diversification programme in line with Economic Vision 2030 and the Industrial Strategy 2021. It plays a pivotal role in catalysing In-Country Value (ICV) by further strengthening the local industrial manufacturing ecosystem to achieve a competitive and resilient economy.
He added: “Looking at the current and future investments planned towards expanding oil and gas capabilities, SENAAT is well positioned to cater to the stringent demand for cutting edge technology, products and services that help drive efficiency, economy and safety – this sits at the core of our value-oriented investment strategy with focus on creating sustainable financial returns.”
Al Dhaheri pointed out that Al Gharbia can take the momentum of bilateral ties between the UAE and Japan to the next level, fostering greater industrial cooperation and partnership in areas of mutual business interest. “The success of this bilateral project is a testimony to our commitment to provide a conducive environment for international businesses and companies looking to engage with local partners and capitalise on the immense opportunity and scope that the UAE offers.”
The state-of-the-art facility will manufacture longitudinally welded large-diameter, thick wall, sour service, steel pipe to service the region’s construction and energy sector.
The plant’s new line is designed to make pipes up to 13.0 meters length with an outside diameter ranging from 18 to 56 inches, and the maximum wall thickness of 44.5 millimetres. Once fully operational, the plant’s annual production capacity is set to reach 240,000 tons, of which around 40 per cent will be exported to neighbouring markets in the GCC and greater Middle East, as well as North and East Africa.
Early this year, Al Gharbia Pipe Company received an approval from American Petroleum Institute (API) to supply products to oil and gas industry, in addition to an approval from ADNOC for sour and non-sour pipes, which qualifies Al Gharbia as a potential supplier for ADNOC projects with a high In-Country Value score.
Strategically located in KIZAD, Al Gharbia Pipe Company benefits from its proximity to Khalifa Port, which is fully equipped to handle all types of cargo and has access to a specially designated eight-lane highway, the Modular Path, for moving over-sized equipment in a fast, safe and economical manner. The exceptional infrastructure and transportation network, as well as seamless logistical services offered by KIZAD, will make a significant difference to Al Gharbia’s business operations, providing easy access to receiving the raw material for the production purpose and export the finished products to regional and international markets.
SENAAT currently manages nearly AED 27.3 billion of industrial assets and has invested in the non-oil sector an average of AED 1.6 billion a year over the last 10 years. Over the years, SENAAT has made remarkable progress in developing a modern industrial base for a diversified futuristic economy capable of competing on local, regional and global level.