The contract has been confirmed between Al Gharbia Pipe and Abu Dhabi Ports to construct a AED1.1 billion factory in Khalifa Industrial Zone (Kizad).
This deal has been divulged in March. Al Gharbia Pipe will produce steel pipes for the nation’s oil and gas sector, particularly for transporting sour gas. The corporation is a joint venture between a holding company of the Abu Dhabi government, Seenat and the Japanese companies JFE Steel and Marubeni-Itochu Steel.
Sour gas has high levels of hydrogen sulphide, a highly corrosive and poisonous gas. A plan of 200,000 square metres has been allotted for the plant, which is scheduled to begin in 2018. The plant will produce up to 240,000 tonnes of steel pipes each year and generate 370 employments.
With the continuing development of the oil and gas division in the region, the demand for high-quality steel pipes is approximated to enlarge progressively.
Abu Dhabi Ports’ contribution to the emirate’s economy escalated over 30% in 2014, according to statistics.
The ports operator which manages Kizad, Mussaffah Port and Mina Zayed added AED14.1 billion to Abu Dhabi’s GDP in 2014, up 33% from AED10.6 billion in 2013.