Arabian Pipes Company Secures $64.2 Million Pipe Supply Contract from Saudi Aramco

NEWS&CASES

Time：2026-04-20

Class：News

Signing Date: Contracts signed on March 17 and 18, 2026; officially announced on April 14, 2026
Parties Involved
- Buyer: Saudi Arabian Oil Company (Saudi Aramco), the world’s largest oil producer
- Seller: Arabian Pipes Company (APC), a leading welded pipe manufacturer based in Saudi Arabia
Total Contract Value: SAR 241 million, approximately $64.2 million USD

Contract Structure

First contract (March 17): SAR 94 million (around $25.06 million USD), with a 9-month execution period
Second contract (March 18): SAR 147 million (around $39.14 million USD), with an 11-month execution period

Delivery Period: Implementation commences immediately upon signing; financial impacts will be reflected mainly in Q3–Q4 2026 and Q4 2026–Q1 2027

Products Supplied

Large-diameter welded pipes: Mainly API-standard ERW (Electric Resistance Welded) pipes for oil and gas transmission
Anti-corrosive seamless pipes: Equipped with desert-specific anti-corrosion coatings, suitable for high-temperature, high-salinity and strong wind-sand environments

Application Fields: Used in Saudi Aramco’s large-scale oil and gas field developments, long-distance oil and gas trunk pipelines, oil and gas processing plants and other core energy infrastructure projects within Saudi Arabia and the Middle East region

Status: A major welded steel pipe producer in Saudi Arabia and the Middle East, listed on the Saudi Stock Exchange (Tadawul)
Capacity: Capable of large-scale production of large-diameter, high-grade line pipes; products serve the petroleum, natural gas, water utilities and industrial infrastructure sectors
Cooperation History: Long-term partner of Saudi Aramco; previously secured pipe supply contracts worth $78.1 million in July 2024 and $28.53 million in August 2024

Status: The world’s highest-valued company and largest crude oil exporter, controlling Saudi Arabia’s national oil and gas resources
Project Background: Advancing hundreds of billions of dollars worth of projects including the Jafurah unconventional gas field and offshore oilfield expansions, driving strong demand for high-end steel pipes
Localization Strategy: In line with Saudi Vision 2030, prioritizing procurement from local enterprises to raise the industrial localization rate

Performance Support: The total order value exceeds the company’s quarterly revenue in recent years, significantly boosting profitability and cash flow in 2026–2027
Qualification Enhancement: Strengthens its position as a core pipe supplier to Saudi Aramco, laying a foundation for bidding on larger future projects

Deeper Localization: Reflects accelerated progress in “local manufacturing and local supply” across Saudi Arabia’s energy industrial chain
Demand Benchmark: Signals high prosperity in Middle Eastern oil and gas infrastructure, sustaining strong demand for carbon steel and anti-corrosive steel pipes in the region
Technology Orientation: Drives local pipe manufacturers to upgrade technologies for large-diameter, high-corrosion-resistant and high-grade products
5. Market Background and Industry Trends

Middle Eastern Steel Pipe Demand: Driven by oil and gas expansion and infrastructure investment in Saudi Arabia, the UAE, Kuwait and other countries, annual demand for line pipes and oil country tubular goods (OCTG) is projected to grow by approximately 5%–8% in 2026–2028
Competitive Landscape: Dominated by local enterprises including APC and Tenaris Saudi Steel Pipe; international manufacturers from Europe, Japan, South Korea and China participate mainly in high value-added product segments
Price Trends: Supported by iron ore costs, energy prices and geopolitical factors, Middle Eastern steel pipe prices will remain high in 2026, with notable premiums for anti-corrosive and large-diameter products

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