Welspun's associate firm signs contract with Saudi Aramco worth SAR 1.8 bn
May 23, 2023
Mumbai (Maharashtra) [India], May 23 : Line pipes maker Welspun Corp has announced its associate company, East Pipes Integrated Company for Industry (EPIC) in the Kingdom of Saudi Arabia (KSA), has signed a contract for the supply of large diameter steel pipes with Saudi Aramco for a total value exceeding Saudi Riyal (SAR) 1.8 billion (Rs 4,000 crore approximately) inclusive of value added tax.
The financial impact of the contract will be reflected in the third quarter and fourth quarter of the current financial year -- FY24, as well as first quarter of the financial year FY25.
This is one of the single largest orders for EPIC from Saudi Aramco and represents the major share of the first package of the Master Gas - Phase 3 project. This is an extremely strategic project, where the Kingdom of Saudi Arabia has embarked upon converting a number of power plants from oil to natural gas, according to a statement from Welspun.
Saudi Aramco is extending the existing Master Gas System (MGS) to the Western Province in order to supply the power plants located there.
The development and expansion of the MGS will have a major impact, not just on the existing gas network capacity, but also to accelerate the drive towards a cleaner energy mix, helping to reach the net-zero emission goal set by the country.
EPIC is Saudi Arabia's leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes. It's fully integrated manufacturing facilities, track record of effective execution, and technological know-how, enables it to remain well-placed to secure further projects both in the water and oil and gas sector, according to Welspun.
