Agreement signed for GRE facility in Al Duqm

MUSCAT, JAN 5

Omani oilfield services company, Hema Energy has entered into a landmark cooperation agreement with Shengli Oil Field Xinda Pipe Technology Development Co, Ltd, to establish a state-of-the-art Glass Reinforced Epoxy (GRE) manufacturing facility in Al Duqm. The facility is set to produce GRE lining for carbon steel (CS) pipes, GRE high-pressure pipelines, GRE tubing and GRE casing, marking a significant step in Oman’s industrial and economic landscape.

In an interview with Oman Observer, Azzan Moghrob Asmi, General Manager for Oman, UAE & KSA and Acting Group Managing Director of Hema Energy, expressed his enthusiasm for the project. He highlighted the longstanding relationship between the two entities, which began nearly a decade ago. “We have acted as the Omani representative for Xinda, successfully delivering projects for major oil and gas companies in Oman, as well as the Ministry of Defence,” Asmi said.

ECONOMIC AND STRATEGIC BENEFITS

Asmi emphasised the strategic importance of Al Duqm as the location for the GRE facility. “Having the facility in Al Duqm will boost the local economy and create jobs for local companies, such as those in logistics, as well as for the people of Al Duqm,” he said. The facility will also result in a more competitive market, addressing the rising demand for GRE products in Oman and the Gulf Cooperation Council (GCC) region.

Hema Energy's decision aligns with its broader strategy to transition from a supplier model to a manufacturer model. “This shift, which was approved by our board in 2024, will make products more readily available and open up more employment opportunities,” Asmi explained. He drew parallels with the company’s success in establishing “Oman Flanges,” a factory for flanges in Nizwa, as a blueprint for the current project.

ENVIRONMENTAL AND MARKET IMPACT

The move to GRE technology is particularly significant in addressing the challenges posed by the corrosiveness of oil and gas fields. “Non-metallic solutions like GRE help reduce pipeline failures and leaks, thereby improving production efficiency and minimising environmental risks,” Asmi noted. While the technology is already widely used in downstream operations, Hema Energy plans to focus its efforts on upstream applications, where demand is surging.

FUTURE PLANS AND OMAN VISION 2040

The GRE facility is slated to begin production by Q3 2026, though Hema Energy is working to expedite the timeline. Beyond GRE pipes, the company envisions expanding into the manufacturing of GRE tank farms, electrical poles, fiber sucker rods and tank linings.

Asmi also underscored the alignment of this project with Oman Vision 2040. “Our initiative supports competitive business opportunities, integrates SMEs with large corporations and enhances Oman’s global standing by diversifying imports and exports,” he said.

This project is poised to transform Oman into a regional hub for GRE production, fostering economic growth, innovation and sustainability. As Asmi concluded, “The benefits of this venture will extend to all stakeholders, reinforcing Oman’s position as a leader in industrial development.”