Industry

Localised manufacturing for resilient power solutions in Saudi Arabia

Image_of_localised_manufacturing_for_resilient_power_solutions

UTEC's products are specifically designed to integrate seamlessly with the regional grid. (Image source: UTEC)

Reliability begins with proximity. At UTEC, we are not just closer to our clients, but we are closer to the future Saudi Arabia is building.

Introduction

Saudi Arabia’s power transformation is no longer a vision; it’s happening fast. As the Kingdom advances toward a diversified and tech-driven economy, localised manufacturing is emerging as a vital enabler. At UTEC, we see it as a strategic imperative rather than just considering it a regulatory requirement. This approach enables national resilience, increased reliance on indigenous manufacturing capabilities, and supports accelerated infrastructure growth.

Today, I want to touch upon the current landscape of localisation in Saudi Arabia and its impact on the Transmission and Distribution (T&D) sector. Being a Saudi company, I would also be highlighting UTEC's role and contributions to the Kingdom’s ongoing economic transformation.

Why local manufacturing is a strategic advantage

The recent chaos, including supply chain backlogs and transport delays, has made our industry realise our excessive dependence on imported technologies. Localisation is fundamentally about regaining control. It reduces our dependence on overseas producers, shields us from global disruptions, and keeps our infrastructure plans on track.

As the CEO of a T&D equipment company, I have witnessed the impact of global supply chain disruptions on critical infrastructure timelines. The recent crises in Western markets have made us aware of the risks of over-reliance on equipment built and manufactured overseas. The events emphasised the point that the development of local capabilities is not only strategically beneficial but also a necessity.

Manufacturing power system technologies in the Kingdom, particularly critical equipment such as transformers and switchgear, are highly valuable. It enables us to complete projects more quickly, serve local stakeholders more effectively, and easily tailor our equipment to meet Saudi Arabia's grid and environmental requirements.

In my view, building an industrial base within the Kingdom is essential. Positioning economic value within our own borders not only strengthens our economy but also holds onto critical knowledge and drives innovation. With domestic demand growing, having robust capacity for production puts UTEC and Saudi Arabia more broadly well placed to enter international markets.

UTEC's commitment to local manufacturing and national growth

As Saudi Arabia advances its localisation agenda and strengthens its power infrastructure, UTEC stands as a long-term contributor to this vision. Our locally rooted operations, product expertise, and close alignment with national goals uniquely position us to support the Kingdom’s transformation in the transmission and distribution sector.

Saudi made

Over the last two decades, UTEC has been producing distribution transformers, unit substations, and medium-voltage switchgear in the Kingdom. Our operations are 100% Saudi-based, and our products are specifically designed to integrate seamlessly with the regional grid.

Engineering for local needs

Transformers and switchgear are not standardised products; they must be tailored to the working conditions of every project, the national standards for every targeted market, through local engineering expertise supported with global expertise and close liaison with clients, UTEC ensures that every system we supply is aligned with site conditions, regulatory compliance, and long-term performance expectations.

Reliable local support

Our domestic manufacturing model is also enhanced by after-sales service and lifecycle support, both of which are essential to ensuring long-term reliability. Customers know they can count on our professionals and technical experts to fix issues quickly and effectively when they inevitably arise. This level of responsiveness isn't typically available with overseas suppliers or off-the-shelf components.

Supporting the Kingdom’s vision

Our alignment with national objectives supporting the localisation efforts of the Ministry of Energy and the SEC's grid modernisation initiative ensures that solutions provided by UTEC meet evolving technical and operational standards, thereby future-proofing the Kingdom's infrastructure.

Empowering scalable power for national development

As Saudi Arabia launches some of the world's most ambitious industrial and infrastructure growth projects, including giga-cities and renewable energy initiatives, power systems must expand more rapidly than ever before.

With UTEC, we are working to turn this development into a reality. By manufacturing essential power equipment domestically, such as transformer bushings, as well as establishing the first factory in Saudi Arabia, we aim to alleviate project bottlenecks, minimise procurement risks, and accelerate project schedules.

UTEC CEO Opinion Piece Infographic Image 11

We facilitate innovative projects, such as NEOM and the Red Sea Project, as well as industrial clusters, with expedited and superior-quality solutions that meet rigorous design, safety, and performance requirements.

In addition, with the Kingdom's increasing diversification of its energy mix through the addition of solar, wind, and hydrogen, the design of equipment needs to be more responsive and flexible. With a presence in the region, we are attuned to such evolution, enabling us to co-create with our partners and seamlessly adapt to changing systems and technical requirements.

Building human capital and technology capability

I believe localisation is not only the local manufacturing of goods, but also the enabling of local talent to create, innovate, and drive the future. It is for this reason that, at UTEC, we have ensured the engagement of local engineers, technicians, and managers in every aspect of our operations. Manpower localisation has also added value in cooperation with Saudi universities for internship programmes, followed by hiring.

It is critical to invest in daily training programmes, experiential technical courses, and continuous knowledge sharing. For me, factories are not simply manufacturing plants but also learning establishments that drive the kingdom’s industrial growth and sustained wealth.

Aligned with national vision—and going beyond

Saudi Arabia’s push for local manufacturing is not just a policy, but a clear national priority included in Vision 2030 and supported by frameworks such as the Local Content and Government Procurement Authority. At UTEC, we are proud to be at the forefront of this effort, not only achieving localisation targets but also exceeding them.

With every transformer and switchgear that we produce locally, we are enhancing the Kingdom's strategic direction. UTEC is creating economic value and helping the country move closer to energy independence. Our commitment goes beyond meeting local content mandates; we strive for excellence in local manufacturing within the power sector.

Beyond the Saudi market, our products are currently serving industries and utilities in more than 23 countries including the UK, Qatar, South America, and Kuwait. Transformers manufactured locally by UTEC are sought across diverse markets of the Middle East, Africa, and Europe. We are also making footprints in Asian economies. Our strong global presence is proof that Saudi Made is not just marked but has become a symbol of quality and innovation.

Conclusion: The future is local and built to last

Saudi Arabia is on an ambitious path towards a cleaner, brighter, and more sustainable energy future. Bringing the vision to life needs more than importing foreign solutions; it demands local commitment, capacity, and capability.

We at UTEC are proud to be a long-standing partner in the Kingdom's vision for energy. We pledge to provide high-quality and dependable power solutions, including transformers, switchgear, and associated electrical equipment, all of which are locally manufactured in Saudi Arabia. Our vision is not limited to serving the local market; we aim to contribute to making the Kingdom a regional hub for energy production and export.

With our partners, we are not just manufacturing equipment, but also fostering trust, and resilience, and laying the foundation for long-term self-sufficiency.

About Author:

Wael Gad, CEO, UTEC
Wael Gad is the CEO and Board Member of Bawan Engineering Group, a subsidiary of Bawan Holding, a public listed KSA company. Bawan Engineering Group consists of several companies operating in the manufacturing and services of Electrical & Digitization equipment (Transformers, Substations, Switchgears, e-Houses, Battery Energy Storage Systems (BESS) and Data Centers). Bawan Engineering Group sells its products in more than 20 countries across the world under the brand UTEC. Wael has more than 30 years of diversified experience across Europe, the Middle East and Africa, leading several multinationals and regional organizations. Wael serves as a board Member of several companies in Saudi & Egypt, he also served as an advisory board director and as a Business Development and governance Advisor with several organizations. Previously Wael was the CEO of Philips Lighting in Saudi, the General Manager of Microsoft MMD in Saudi & Yemen and he also held several C-level assignments for Electrolux across EMEA.

OQGN awards US$272mn Oman pipelines contract

Oman expanding pipeline infrastructure

OQ Gas Networks SAOG (OQGN) has awarded a contract worth US$272mn for the Fahud - Suhar Loop Line Project to The Petroleum Projects Company Petroject and Partners LLC

A separate award for pipeline has been made to Jindal Saw Limited.

The main contract covers the engineering, procurement and construction (EPC) of the 193 km pipeline by Petroleum Projects Company Petrojet and Partners LLC, and will see a new 42-inch, 193 km loop line built from Fahud to Sohar.

Announcing the contract to the Muscat Stock Exchange, OQGN, which operates Oman’s gas transportation network, said the agreement was signed on 17 June, 2025, and will take more than 24 months to complete.

“As part of the executing strategy, the company has also awarded the supply of 193 km of line pipe to Jindal Saw Limited,” the OQGN statement noted.

Fahud - Suhar Loop Line Project forms part of wider plans by the company to boost Oman’s gas supply network and to develop energy infrastructure around Sohar.

“The project aligns with the company’s growth strategy and vision in leading the energy infrastructure,” the OQGN statement added.

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Oman ministry is prioritising local content

New seal from John Crane cuts nitrogen use and enhances performance

This next-generation seal builds on John Crane’s extensive expertise in industrial sealing. (Image source: John Crane)

John Crane, a global leader in rotating equipment solutions and part of Smiths Group plc, has unveiled the Type 93AX Coaxial Separation Seal, a cutting-edge dry gas sealing solution designed to help customers reduce emissions, enhance equipment reliability, and lower operational costs.

This next-generation seal builds on John Crane’s extensive expertise in industrial sealing, offering a robust, fail-safe design that remains operational even under multiple failure scenarios.

Engineered with direct customer input, test data indicates the seal reduces nitrogen consumption by up to 80% compared to conventional radial separation seals, delivering significant efficiency and sustainability benefits.

3 ways the seal helps customers

Contamination is a major cause of dry gas seal failures, contributing significantly to unscheduled maintenance and equipment downtime.

The Type 93AX addresses this challenge by preventing oil ingress from the compressor bearing chamber, thereby minimising risks and supporting continuous, reliable operation.

According to Deloitte, unplanned downtime costs the global process industries an estimated US$50bn annually, with equipment failure accounting for 42% of such disruptions.

In energy and process applications, this translates to average losses of up to US$42mn per facility per year.

The Type 93AX mitigates these performance and financial risks by enhancing the reliability of the dry gas seal system and reducing demand on supporting infrastructure, such as nitrogen generators and air compressors.

The seal is also designed to operate effectively in three distinct scenarios, automatically adapting to failure situations to minimise disruption and contain gas or oil migration.

In standard operation, it provides non-contacting operation for positive oil ingress mitigation. If separation gas is lost, the seal maintains non-contacting operation and oil control.

In the event of a dry gas seal failure, it restricts process gas leakage during compressor shutdown at pressures up to 35 bar, while maintaining seal integrity up to 70 bar.

The Type 93AX also supports sustainability goals by reducing emissions and energy consumption. By cutting nitrogen use by up to 80%, according to test data, it lowers the demand on energy-intensive nitrogen generation systems, reducing both costs and environmental impact.

The International Energy Agency highlights that improving industrial efficiency could reduce global energy use by 12% by 2040, underscoring the significance of solutions like the Type 93AX in advancing operational and environmental objectives.

The company said that its innovations align with regional sustainability initiatives in the Middle East, such as the UAE’s Net Zero 2050 Strategy, the Make in the Emirates Initiative, and Saudi Vision 2030’s Saudi Green Initiative, which aim to reduce industrial carbon emissions by over 90% in some cases through public and private sector partnerships.

Mike Eason, Chief Technology Officer at John Crane, said, “Our customers told us they wanted a separation seal that increases safety, efficiency, and reliability. The Type 93AX delivers on these priorities. It’s designed to keep working in real-world failure conditions to protect their most critical assets, and reduce environmental impact, while driving down OPEX and CAPEX.

“The new seal is compatible with John Crane’s dry gas seal portfolio and is supported by a global network of over 200 facilities, including manufacturing, sales, and services, and 13 global turbo service centers in more than 50 countries. It can be sold as part of a bundled first-fit order or compressor upgrade or supplied as a stand-alone product to meet customer-specific requirements.”

ASCO to provide logistics services in the North Sea

The five-year contract is worth roughly £150mn. (Image source: ASCO)

ASCO has signed an important nine-figure deal with a major North Sea oil operator, cementing its position as the energy industry's leading logistics provider.

The substantial five-year contract, worth roughly £150mn, begins on July 1, 2025. The scope includes ASCO's full range of integrated logistics services, such as quayside operations, warehousing, materials management, marine gas oil, environmental services, aviation, customs, freight forwarding, and ship agency.

The award is a significant milestone for ASCO, as it represents one of the company's largest and most comprehensive logistics contracts in recent history. It demonstrates the industry's trust in ASCO's demonstrated capacity to provide mission-critical support for complex offshore operations in one of the world's most challenging energy environments.

This latest award follows a string of significant wins in the North Sea, with long-term contracts won in the UK and Norway alone for more than £450mn in 2025.

It also represents a broader industry trend towards integrated logistics solutions that simplify operations and boost efficiency. ASCO's approach, which combines digital innovation with a sustainability-driven model, has proven successful in assisting operators in managing complicated offshore supply chains while maintaining a strong focus on safety and environmental responsibility.

“This is a transformational contract for ASCO, both in scale and strategic importance,” said Mike Pettigrew, ASCO chief executive officer. “It validates our deep expertise in the North Sea, where we have been operating for almost 60 years, and our ability to deliver end-to-end logistics solutions that are safe, efficient and resilient.

“We’re increasingly being recognised as a trusted partner in the global energy supply chain and are proud to play such a pivotal role in enabling safe and efficient offshore activity, while continuing to lead the way in supply chain transformation.”

Is profitability the fourth leg of the energy trilemma?

The energy trilemma was the focus of discussion at the session. (Image source: AIEN International Summit)

At final session of the AIEN International Energy Summit, held in Istanbul from 10-12 June, the trilemma of energy security, affordability, and sustainability was in the spotlight

The panel also debated whether profitability should be considered the fourth leg of the trilemma.

Moderator Jay Park KC, managing partner, Park Energy Advisory Ltd asked the panel what the current priorities were of the triangle, and if we were seeing a shift to one corner.

Yelda Guven, VP Policy, EMEA, ExxonMobil Low Carbon Solutions said, “That’s the challenge – how do you make sure energy security and affordable energy can reach the growing population, but do it in a low carbon way? The industry knows how to reduce emissions but it needs support.”

Leonardo Sempertegui, general legal counsel, OPEC added, “While the perspective of security has been in everyone’s attention in recent years, it has been in the developing world for a long time. There is no way out of poverty without stable and abundant energy. At this point, thinking about reducing certain sources of energy with the objection of reaching an ‘artificial’ target – it is bringing some countries to a complicated position. What they need is development. So, this triangle has different legs in each jurisdiction.”

Carlos Bellorin, EVP Macro Research & Advisory, Welligence Energy Analytics agreed: ‘The corners of the triangle are always shifting. Security is currently a top priority to some countries due to ongoing turmoil around the world. Affordability affects everyone in the world. Sustainability hasn’t disappeared – we know a low carbon future is the way forward.’

Graham Kellas, SVP, Global Fiscal Research, Wood Mackenzie was asked how to balance sustainability in light of the growing demand for oil and gas. “10 years ago, the oil price had just crashed and there was the Paris agreement. We saw the level of total capital investment in energy supply rise in low carbon and renewables from one third to a half, while oil and gas came down. And then Covid happened and the momentum behind the sustainability bit of our triangle flipped to affordability. Then in the third phase, after February 2022 and the Russian invasion, it has turned to security. The level of investment into renewables has remained constant, but we have seen an uptick in oil and gas. Diversification is what is underplaying it, and we are not going to an end point with no fossil fuels being produced – there will always be a diverse range.”

At this point, a member of the audience asked if ‘profitability’ actually turned this into a ‘quadrilemma’.

“That’s spot on!’ said Kellas. “This is something that is sometimes lost in the conversation – the need for private companies to make a return for shareholders. There is a certain return you can make from risk-free bonds, so why would you invest in a new emerging project with all the risks attached? You can’t just tell companies that they must do “this or that” without acknowledging that shareholders need to see a return on their investment.”

Guven agreed. “This is what the public debate doesn’t cover enough! The private sector is beholden to shareholders. You have to have that return or no one will invest in the energy transition.”

Sempertegui slightly disagreed on the terminology. “I still think it is a trilemma. Profitability falls within sustainability, just not in terms of emissions. We have a system to sustain – we can’t just reverse 300-400 years of history. As long as we make policy based on facts and realities, we’re fine and going somewhere. When some actors think there is an ideology and have their own agenda, we are in a different scenario. So, I think it is a trilemma, but I appreciate these are semantics.”

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