Dalipal China plans to set up oil, hydrogen pipe factory in Saudi Arabia: BMG Financial CEO

Basil Al Ghalayini, CEO of BMG Financial Group

China’s Dalipal Holdings Ltd. plans to set up an export-oriented manufacturing hub in King Salman Energy Park (SPARK) to supply oil, gas, and hydrogen pipelines in the Gulf region, Europe, and the United States.

Dalipal obtained approvals from the Ministry of Investment, Ministry of Industry, Ministry of Energy, Saudi Aramco, and SPARK in Dammam, Basil Al Ghalayini, CEO of BMG Financial Group, told Argaam on the sidelines of Capital Markets Forum.

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BMG Financial is the financial advisor to Hong Kong-listed Dalipal.

Al Ghalayini pointed out that Dalipal’s expansion in Saudi Arabia is supported by favorable factors in the Kingdom, such as energy availability, logistics infrastructure, and raw material availability.

The demand for Dalipal products remains high, the CEO noted, adding that the company boasts advanced pipe manufacturing technologies, relying on AI, which gives it a competitive edge compared to existing manufacturers in Saudi Arabia.

Al Ghalayini highlighted that the company received approval from Aramco as a supplier and will begin supplying its products from China until the factory in Saudi Arabia is completed. The factory is expected to start operations by the end of this year, with the construction process anticipated to take about two years.

The project will be financed through a private placement to increase capital by $600 million in the first phase, which is still in the aggregation process after receiving a no-objection from the Capital Market Authority. A second phase will follow, aimed at raising $1.5 billion by the end of this year.

During the Capital Markets Forum, a consulting agreement was signed between BMG Financial and Dalipal to initiate the process of dual listing on the Tadawul platform this year, pending regulatory and supervisory approvals.