Eastern Pipes: New contract with Aramco not linked to emergency repairs

Mohammed Darweesh, Acting CEO of Eastern Pipes Integrated Company for Industry, said that the new contract the company secured from Saudi Aramco at a value of SAR 770 million, is related to the East-West Pipeline and is not linked to the repair or replacement of sections damaged as a result of emergency incidents.

In an interview with Al Arabiya TV, Darweesh added that the project had been in the planning stages for some time and had gone through the usual phases, starting with the definition of engineering and technical requirements, through commercial evaluation and pricing, and culminating in the award and signing of the contract.

The contract represents a significant addition to the company’s portfolio, reflects its operational and technical capabilities, strengthens its presence in energy-related projects, and supports its commitment to sustainable growth and maximizing shareholder value, while also supporting local content and Saudi industry, said Darweesh.

He pointed out that this latest contract accounts for approximately 34% of the annual revenue generated last year.

The CEO further anticipated that additional opportunities and projects would continue to be offered by Aramco, based on its long-term programs to expand oil and gas transmission networks, and that the company has the financial and production capacity to accommodate these projects. Among the most notable is the Master Gas Network Expansion Project—Phase 4, which is expected to be announced in the coming months.

"We have strengthened our readiness by adding a new production line that increased nominal production capacity by approximately 100,000 metric tons per year, bringing it to nearly 500,000 metric tons, with the potential to reach an actual capacity of about 600,000 metric tons per year depending on project specifications. We als9 continue to benefit from strong domestic demand," said the CEO.

Darweesh confirmed that the company has a plan to export part of its production, but is currently focused on meeting domestic demand, which exceeds available production capacity.