Saudi companies to export steel pipes to Sudan
RIYADH, Sep 23, 2004 (Saudi Economic Survey) — A Saudi alliance consisting of the Arabian Pipes Company, (a Saudi joint stock company based in Riyadh), and the Saudi Steel Pipes Ltd., based in Dammam, have won a contract to export pipes for Dodsal Co. Ltd.. Dodsal is the contractor for the provision, equipping and operation of pipelines to transport petroleum products in Sudan, on behalf of the Indian oil giant of Oil and Natural Gas Corporation (ONGC). The contract includes provision of pipelines for the transportation of various petroleum products from the refinery in Khartoum, to Port-Sudan Harbor, with a length of 748 kilometers and a cost of more than SR 145 million.
The pipes’ diameters are 12 inches each and they are welded length-wise through electrical resistance. The pipes should be capable of enduring high pressure and are designed to use in most difficult environments.
The companies will start manufacturing steel pipes during the last quarter of this year, and later send them to the Arabian Pipes Company, which would encase the outer surface of the pipes with Polyethylene, in order to protect pipes from rust and corrosion, as well as to prolong its durability. Afterwards, the pipes will be transported to the port for exporting.
The two Saudi companies managed to win the contract, despite the presence of prominent Japanese, Asian and European companies, which have much expertise in manufacturing steel pipes. This illustrates the competitiveness of steel pipe manufacturing in the Kingdom, as well as conforming to the latest technologies and technical specifications in this field. Reinforcing these capabilities, the Saudi Iron and Steel Company (Hadeed), one of SABIC’s affiliate companies and the biggest manufacturers of steel rolls in the region, has joined this partnership in its capacity as the supplier of raw materials for steel rolls which are used in the manufacturing of pipes. Their contract exceeds SR 145 million, and will be implemented with high industrial capabilities and with 100% Saudi expertise.