Senaat, a major industrial investment holding company in the UAE, has announced that one of its units, Al Gharbia Pipe Company, has launched commercial production of large-diameter, sour grade welded steel pipes in Abu Dhabi.
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 Abu Dhabi-Japan industrial venture.
Announcing the operational milestone, Senaat said 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.
Al Gharbia Pipe Company, a subcontractor of Habshan Trading, will soon start work for supplying conductor pipes for Hail and Ghasha offshore sour gas fields by Abu Dhabi National Oil Company (Adnoc).
The 200,000-sq-m 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 at an investment of Dh1.1 billion ($299 million).
Chairman Engineer Aqeel Abdulla Madhi 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," stated Madhi.
"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," he noted.
The plant’s new line is designed to make up to 13-m-long pipes with an outside diameter ranging from 18 to 56 inches, and the maximum wall thickness of 44.5 mm.
Once fully operational, the plant’s annual production capacity is set to reach 240,000 tonnes, 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 won approval from American Petroleum Institute (API) to supply products to its 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.
"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," he added.
Senaat CEO Engineer Jamal Salem Al Dhaheri 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," he noted.
"It plays a pivotal role in catalyzing In-Country Value (ICV) by further strengthening the local industrial manufacturing ecosystem to achieve a competitive and resilient economy," stated Al Dhaheri.
"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," he added.