4 firms to build SR3.75bn pipes plant
4 firms to build SR3.75bn pipes plant
In the first stage of the project, however, the production capacity is expected to reach 600,000 tons of steel in which seamless pipes, iron, and iron alloy will be made
The plant, which is believed to be at the final stage of signing at contract, which is set for the beginning of 2015, will help manufacture industrial and construction equipment. The plant is claimed to be the first one in the Middle East to produce seamless pipes with diameters of 19 mm to 137 mm 4/3 to 5.50 inches.
Salama Al-Enizi, chairman of Gulf Tubing Company GTC and the owner and developer of the project, told a press conference in Alkhobar on Monday that the plant will generate 1,200 jobs, including 800 direct jobs for Saudi youth and 400 indirect jobs at the plant, which are expected to be available by summer 2017.
The plant is estimated to cost $1 billion (SR3.75 billion). The project will be financially managed by Alinma Investment.
Al-Enizi highlighted the training program plans that will extend for two years in different fields, including the plant's operation and maintenance, and metals and equipment engineering in both Germany and Czech.
He added that cooperation deals have been reached in advance with Saudi Aramco and Saudi Basic Industries Corporation (SABIC) as well as the Royal Commission in Jubail and Yanbu to supply these companies certain products produced in the plant.
He also pointed out that the plant will manufacture drill pipes, oil and gas well covers, pipeline steam boilers, heat exchangers, petroleum furnaces, construction pipelines, mechanical equipment and small pipelines.
‘Get prices down’ Trump tells OPEC
- Trump highlights US security role in region
- Comments come ahead of oil producers meeting in Algeria
LONDON: US president Donald Trump urged OPEC to lower crude prices on Thursday while reminding Mideast oil exporters of US security support.
He made his remarks on Twitter ahead of a keenly awaited meeting of OPEC countries and its allies in Algiers this weekend as pressure mounts on them to prevent a spike in prices caused by the reimposition of oil sanctions on Iran.
“We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices!” he tweeted.
“We will remember. The OPEC monopoly must get prices down now!”
Despite the threat, the group and its allies are unlikely to agree to an official increase in output, Reuters reported on Thursday, citing OPEC sources.
In June they agreed to increase production by about one million barrels per day (bpd). That decision was was spurred by a recovery in oil prices, in part caused by OPEC and its partners agreeing to lower production since 2017.
Known as OPEC+, the group of oil producers which includes Russia are due to meet on Sunday in Algiers to look at how to allocate the additional one million bpd within its quote a framework.
OPEC sources told Reuters that there was no immediate plan for any official action as such a move would require OPEC to hold what it calls an extraordinary meeting, which is not on the table.
Oil prices slipped after Trumps remarks, with Brent crude shedding 40 cents to $79 a barrel in early afternoon trade in London while US light crude was unchanged at about $71.12.
Brent had been trading at around $80 on expectations that global supplies would come under pressure from the introduction of US sanctions on Iranian crude exports on Nov. 4.
Some countries has already started to halt imports from Tehran ahead of that deadline, leading analysts to speculate about how much spare capacity there is in the Middle East to compensate for the loss of Iranian exports as well as how much of that spare capacity can be easily brought online after years of under-investment in the industry.
Analysts expect oil to trend higher and through the $80 barrier as the deadline for US sanctions approaches.
“Brent is definitely fighting the $80 line, wanting to break above,” said SEB Markets chief commodities analyst Bjarne Schieldrop, Reuters reported. “But this is likely going to break very soon.”