Al Gharbia Pipe Company begins commercial operations in KIZAD
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 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.
“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,” said Aqeel Abdulla Madhi, chairman of Al Gharbia Pipe Company. “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.”
The state-of-the-art facility will manufacture longitudinally welded large-diameter, thick wall, sour service, steel pipes to service the region’s construction and energy sector.
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 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.