The Saline Water Conversion Corporation (SWCC) of the Kingdom of Saudi Arabia has awarded a firm contract for supply of bare line pipe to PSL FZE, Hamriyah (the Sharjah-based subsidiary of PSL Limited, India) for a value of Saudi Riyals 298.6 Million – approximately $80 million.
The contract was signed on March 16, 2011 by the Honourable Water and Electricity Minister Abdullah Al-Hussayen of Saudi Arabia and Mr. D. N. Sehgal of PSL Limited, at SWCC offices in Riyadh.
The project comprises construction of a water transmission system from Ras Azour in the eastern province to Hafr Al-Baten in the central system, constituting API 5L Grade X-65, 44-inch diameter pipes for a total length exceeding 350 km.
Mr. Ashok Punj, Managing Director of PSL, confirmed that with this order from SWCC, the installed capacity of the Pipe Mill at PSL FZE, Hamriyah, shall be fully utilised from April 2011 to May 2012. Resources at PSL FZE, Hamriyah, are further being added to establish another Pipe Mill of capacity 75,000 MT/Year (aggregating to total capacity of 150,000 MT/Year), and the installation of second mill is in advanced stages of completion.
Another offer of approximate value US$ 200 Million for a water transmission pipeline project, for supply of over 600 Km. of pipe as submitted by PSL Limited, India, and PSL FZE, Hamriyah, as Consortium Partners, is also under active evaluation, added Mr. Ashok Punj.
Each pipe for this particular application shall be 18 metres in length, and such piping applications have a very large market potential within the rapidly developing water sector within the Middle East. PSL’s Sharjah facility will be fulfilling the entire requirement of the present order, and is fully geared to meet this upcoming demand.
PSL also announced that it is well equipped to cater to this upward trend in demand for steel pipe growth in various markets, as it maintains a direct manufacturing presence near energy, water, & infrastructure centres via its PSL FZE facility.
PSL FZE commenced operations from its Sharjah-based facility in mid-2007, with a capacity of 75,000 MT/Year. The plant provides pipe supply and coating services for onshore and offshore applications within the United Arab Emirates, Saudi Arabia, Oman, Qatar, Kuwait, and other locations in the Middle-East.
