Dalipal China plans to set up oil, gas, hydrogen pipes factory in Saudi Arabia: BMG Financial CEO

Basil Al Ghalayini, CEO of BMG Financial Group

China’s Dalipal Holdings Ltd. plans to set up an export-led manufacturing hub at King Salman Energy Park (SPARK) to supply oil, gas, and hydrogen pipes to the Gulf region, Europe, and the United States.  

Dalipal obtained approvals from the Ministry of Investment, Ministry of Industry, Ministry of Energy, Saudi Aramco, and SPARK in Dammam, Basil Al Ghalayini, CEO of BMG Financial Group, told Argaam on the sidelines of the Capital Markets Forum.  

BMG Financial is the financial advisor to the Hong Kong-listed Dalipal.  

Al Ghalayini stressed that Dalipal’s expansion in Saudi Arabia is supported by incentives such as energy costs, logistics infrastructure, and raw materials.  

He noted that demand for Dalipal products remains high, explaining that the company produces state-of-the-art pipe manufacturing technologies relying on AI, which gives it a competitive edge over existing manufacturers in the region.  

Al Ghalayini mentioned that the company received approval from Aramco as a supplier and will begin supplying its products from China until the factory in Saudi Arabia is completed. The factory is expected to start construction by the end of this year, taking about two years to finish.  

The project, with a total cost of US$ 2.1 billion, will be financed through a capital increase in two phases.  

Last week at the Capital Markets Forum in Riyadh, an MOU was signed between BMG Financial and Dalipal to initiate the dual listing process on the Tadawul platform this year, subject to the authorities’ approvals.