Strategic Contract for Energy Infrastructure Growth
Arabian Pipes Company, one of the leading steel pipe manufacturers in Saudi Arabia, has landed a significant contract valued at SAR 107 million (approx. USD 28.5 million). The contract involves the supply of steel pipes for the third phase of the Jafurah pipeline project, a key initiative aligned with Saudi Arabia’s broader energy strategy.
Awarded by Br. C.A.T. International, a well-known contractor in the oil & gas and infrastructure sectors, the agreement marks another feather in Arabian Pipes’ cap as it continues expanding its presence in the regional energy supply chain.
Jafurah Project: A Pillar of Vision 2030
The Jafurah gas field is the largest unconventional non-oil associated gas field in the Kingdom and one of the biggest globally. Spanning over 170 km long and 100 km wide, it is pivotal to Saudi Arabia’s plans to diversify its energy mix and reduce reliance on crude oil exports.
The pipeline network across Jafurah is crucial to transporting processed gas and related liquids. Arabian Pipes’ role in this project reflects the company’s technical capabilities and alignment with national infrastructure priorities under Vision 2030.
Undisclosed Quantities & Timely Execution
While Arabian Pipes has not disclosed the exact volume of steel pipes to be delivered, the company has committed to completing deliveries within a nine-month timeframe, suggesting a well-defined logistical roadmap. The types of pipes involved are likely high-grade carbon steel suitable for high-pressure gas transmission, commonly used in pipeline projects.
Such projects typically involve rigorous specifications, indicating Arabian Pipes’ engineering standards and reliability in meeting complex oil & gas industry demands.
Financial Implications for Arabian Pipes
According to Arabian Pipes, the revenue from this project will begin to reflect in its financial performance starting Q3 and extending through Q4 2025. This is expected to bolster the company’s earnings trajectory and strengthen investor confidence, particularly amid rising demand for infrastructure-grade steel products in the region.
The announcement has already drawn attention from market analysts tracking regional pipeline investments and manufacturing sector growth in the Gulf Cooperation Council (GCC) zone.
Br. C.A.T. International: The Project Catalyst
Br. C.A.T. International, known for executing major oil & gas projects across the Middle East, selected Arabian Pipes likely due to its longstanding reputation and technical proficiency. The contractor plays a key role in managing the third phase of Jafurah’s pipeline network—ensuring integration, continuity, and quality across the expansive field operations.
Such partnerships are essential to streamlining domestic industrial supply chains and fostering synergies between producers & contractors.
Reinforcing Domestic Manufacturing Capabilities
This contract also underlines the Saudi government’s support for local content development in its energy & infrastructure projects. By awarding the contract to a domestic manufacturer, the project not only contributes to economic diversification but also enhances the competitiveness of local firms.
Arabian Pipes has repeatedly demonstrated its capacity to fulfill large-scale pipeline orders, both regionally and internationally, and this project will further cement its standing in the Middle East's industrial sector.
Key Takeaways:
• Arabian Pipes awarded a SAR 107 million contract by Br. C.A.T. International.
• The deal involves supplying steel pipes for Phase 3 of the Jafurah pipeline project.
• Jafurah is one of the world’s largest unconventional gas fields, key to Vision 2030.
• Delivery of an undisclosed quantity of pipes will be completed within 9 months.
• Revenue from this project will appear in Arabian Pipes’ Q3 & Q4 2025 financials.
• The pipeline supports energy transition efforts & infrastructure expansion in Saudi Arabia.
• Br. C.A.T. International is the main contractor managing pipeline execution.
• The project strengthens Saudi Arabia’s local manufacturing & industrial base.
