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The new facility will support TenarisGPC's ambitions to become a pipe export hub. (Image source: Tenaris GPC)

TenarisGPC has opened a Longitudinal Submerged Arc-Welding (LSAW) pipe mill in Jubail, Saudi Arabia, which will double the company’s production capacity in the country

The investment will provide more than 100 jobs for local community in the initial stage of the operation.

Strategic rebrand

The completion of this investment comes after a strategic rebrand earlier this year where Global Pipe Company rebranded to TenarisGPC, in furtherance of its ambitions to become a pipe export hub for complex projects worldwide. The new facility complements TenarisSSP's ERW production specialisation and Tenaris Saudi Arabia's premium OCTG threading capabilities.

Renwar Berzinji, chairman of TenarisGPC, and managing director and CEO of TenarisSSP commented, “This is a significant milestone in our ongoing efforts to deliver excellence across all aspects of the production and supply to complex line pipe projects across the Kingdom and beyond.

“The rebranding reinforces our commitment to synergising our operations with Tenaris to create unrivalled value for our customers. We have an unwavering commitment to position TenarisGPC to become a global leader in the supply of LSAW pipe.”

In the upcoming year, the new operation will deliver 15,000 manhours of training and will involve collaboration with top local universities, focusing on hiring Saudi talent, and offering practical training and experience for the next generation of engineers in the country.

 

The new target is part of ADNOC's expanding ICV programme. (Image source: ADNOC)

ADNOC has upped its local manufacturing target for critical industrial products in its procurement pipeline to AED90bn (US$24.5bn) by 2030, to strengthen the UAE’s industrial sector and boost local manufacturing capabilities

ADNOC’s previous 2027 target for local manufacturing of AED70bn (US$19bn) worth of products was delivered ahead of schedule following the award of two contracts for metal pipes and valves worth AED16.8bn (US$4.6bn) to local manufacturers.

Expanded ICV programme

The new target, announced at the ‘Make it in the Emirates’ forum, is part of ADNOC’s expanded In-Country Value (ICV) programme which aims to drive an additional AED178bn (US$49bn) back into the UAE economy by 2028.
His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, and ADNOC Managing Director and Group CEO, said, "Since the launch of ADNOC's In-Country Value programme in 2018, we have successfully collaborated with strategic partners to transform this initiative into an integrated national economic programme to boost the UAE’s economic development.

“This expanded initiative will support the UAE’s economic diversification, attract local and international investors, and provide high-skilled private sector jobs for UAE nationals. Additionally, it will stimulate entrepreneurial growth and drive sustainability in ADNOC’s supply chain. We invite local and international manufacturers to take advantage of our ICV programme and participate in the UAE’s industrial growth journey.”

ADNOC’s expanded ICV programme will provide an accelerator programme to enable small and medium sized Emirati companies to conduct business across ADNOC’s supply chain. The programme will also introduce incentives for the adoption of clean technologies and best-in-class environmental, social, and governance (ESG) practices, as well as accelerating the adoption of artificial intelligence (AI) in ADNOC’s supply chain.

Also announced at the ‘Make it in the Emirates’ forum was the award of a construction contract for TA’ZIZ’s 1 million tons per annum (mtpa) low-carbon ammonia production facility. The construction contract was awarded by Fertiglobe, a partner of TA’ZIZ, Mitsui & Co., Ltd. and GS Energy Corporation, to Tecnimont S.p.A (MAIRE Group). Construction is set to begin in the third quarter of 2024, with operations scheduled to commence in 2027.

Aramco was the top issuer of oil and gas contracts worldwide in Q1 2024, according to GlobalData’s latest Oil and Gas Industry Contracts Review

The leading data and analytics company highlights the award of Tecnicas Reunidas and Sinopec Engineering Group’s two lumpsum contracts combined worth approximately US$3.3bn from Saudi Aramco for the EPC of the Riyas Natural Gas Liquids (NGL) fractionation facility in Saudi Arabia

However, the GlobalData report reveals that the value of oil and gas contracts globally declined in value by 37% quarter-on-quarter in Q1 2024, from US$50.2bn in Q4 2023 to US$31.4bn in Q1 2024, with overall contract volume decreasing from 1,346 in Q4 2023 to 1,142 in Q1 2024.

Contract scopes

Operation and Maintenance (O&M) represented 59% of the total contracts in Q1 2024, followed by procurement with 16%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement accounted for 13%. The O&M scope is primarily dominated by upstream sector contracts, with a significant focus on chartering jack-up rigs, onshore rigs, drillships, and support vessels. In Q1 2024, offshore terrains accounted for the market’s highest share in the oil and gas industry contracts landscape.

Other notable contracts highlighted during the quarter include Samsung Heavy Industries’ US$3.44bn construction contract for 15 LNG carriers, each of 174,000 m3 capacity, and Tecnimont’s approximately US$1.1bn contract from Sonatrach for the Engineering, Procurement, Construction, and Commissioning (EPCC) of a new Linear Alkyl Benzene (LAB) plant with a capacity of 100,000 tons per annum (tpa) and utilities infrastructure in east Algeria. HD Hyundai accounted for the highest share of the oil and gas industry contracts landscape in terms of value during the quarter.

Pritam Kad, Oil and Gas analyst at GlobalData, commented, “Many traditional oil and gas industry projects are getting delayed or postponed due to concerns over demand outlook in oil and gas consuming countries amid the looming recession and high inflation, which is clearly evidenced by the decrease in both contract value and volume.”

"Contrarily, oil prices are anticipated to be favourable for producers due to potential supply disruptions arising from geopolitical risks. GlobalData expects that delayed or near completion projects are likely to be pushed forward in the mid-term."

See also https://oilreviewmiddleeast.com/industry/middle-east-contracts-drive-increase-in-global-oil-and-gas-contract-value-in-q4-2023

TWMA's is experiencing record demand for its Rotomill offshore processing technology. (Image source: TWMA)

Drilling waste management company, TWMA, is expanding in the Middle East following the recent award of a five-year contract in the UAE relating to the world’s largest sour gas development

TWMA has also been awarded multi year expansions to all existing contracts in the region.

TWMA has recorded a significant growth in demand in the last year, with its annual results reporting an increase in turnover to US$70.9mn from US$67.8mn and profit remaining consistent year on year at US$15.3mn. With a record demand for TWMA’s RotoMill offshore processing technology, the firm has seen a significant increase in uptake and utilisation during the last 12 months, specifically in the Middle East and in the North Sea.

Sustainability Linked Bond

Earlier this year, TWMA announced that it has closed a $62.5mn Sustainability Linked Bond on the Nordic ABM in Oslo, confirming its position as an environmental leader within the energy industry.

TWMA chief executive officer, Halle Aslaksen, said, “The financial results cement the continued growth and environmental benefits that our RotoMill technology delivers to our clients’ drilling projects. As sustainability and environmental impact rightly remain a focus for organisations, we are delighted to provide a solution to these challenges and support the industry with safety and cost savings through our technology.

“Our people and expertise in the global regions we operate in continue to allow us to expand and grow and we are looking forward to a positive 2024 with more exciting projects and investment in our business.”

Maurita van Tol (far left) and the Great Futures Festival panel session. (Image source: Johnson Matthey)

Johnson Matthey (JM), a global leader in sustainable technologies, has announced the opening of its new offices in Riyadh, Kingdom of Saudi Arabia (KSA)

JM has been optimising petrochemical operations across the region for over 35 years, enhancing technology performance through catalysts and licensing innovative technologies for the efficient production of chemicals and fuels. The expansion in Saudi Arabia underscores the company’s commitment to the region and aligns with its strategic initiatives to enhance local support and collaboration.

Speaking on a panel on ‘Powering a Greener Future’ at the Great Futures Festival in Riyadh, Maurits van Tol, chief executive, Catalyst Technologies at Johnson Matthey, underlined the versatility of JM's technologies which can utilise various feedstocks to produce a broad spectrum of chemical building blocks and fuels. This feedstock-agnostic approach is pivotal for industries seeking flexible and sustainable solutions. He highlighted how JM's technologies, including its innovative Fischer-Tropsch process (FT CANS), co-developed with bp, and LCH technology for low-carbon hydrogen production, are integral to advancing sustainable aviation fuel (SAF) and other low-carbon solutions.

Van Tol stated, “JM technologies will support KSA as it seeks to diversify its energy sources and reach its sustainability goals. We can and will help it make its vision to lead the world in making a Circular Carbon Economy a reality.”

He added, “JM already has a strong commitment in supporting the KSA in reaching its decarbonisation targets through proactive collaboration on R&D projects with local partners and universities. Our new office in Riyadh shows a deepening of this commitment, and we intend to do more. By localising support and providing advanced, scalable technology, we can support the Kingdom in leading the way in tackling energy and climate challenges, meeting its Vision 2030 goals, and, ultimately, its desire to reach ‘Net Zero’ by 2060.”

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