Al Gharbia Pipe Company starts commercial production of steel pipes

First pipes produced at the plant will supply sour gas fields operated by Adnoc

Senaat's Al Gharbia Pipe Company facility. Senaat has become one of several government-owned companies, alongside the Abu Dhabi Securities Exchange and the National Marine Dredging Company, to be transferred to holding company ADQ. Courtesy Senaat

Al Gharbia Pipe Company, a joint venture between Abu Dhabi-based Senaat and Japanese firms JFE Steel Corporation and Marubeni-Itochu Steel, began commercial production of large diameter, high-quality sour grade steel pipes for use by the region’s construction and energy sectors.

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“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 in a statement on Monday.

“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,” said Mr Madhi.

Al Gharbia Steel Pipe’s manufacturing plant was set up in 2016 at Khalifa Industrial Zone Abu Dhabi (Kizad), with an investment of Dh1.1 billion. It will supply conductor pipes for the Hail and Ghasha offshore sour gas fields operated by Abu Dhabi National Oil Company.

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.

Senaat currently manages nearly Dh27.3bn of industrial assets and has invested an average of Dh1.6bn a year in the non-oil sector over the last 10 years.