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

Basil Al Ghalayini, CEO of BMG Financial Group

China’s Dalipal Holdings Ltd. aims to create an export-led manufacturing hub at King Salman Energy Park (SPARK) to provide oil, gas, and hydrogen pipelines to the Gulf region, Europe, and the United States.

Dalipal gained 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 during the Capital Markets Forum.

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China’s Dalipal Holdings Ltd. aims to create an export-led manufacturing hub at King Salman Energy Park (SPARK) to provide oil, gas, and hydrogen pipelines to the Gulf region, Europe, and the United States.

Dalipal gained 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 during the Capital Markets Forum.

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

Al Ghalayini pointed out that Dalipal’s expansion in Saudi Arabia is driven by incentives such as energy costs, logistics infrastructure, and raw materials.

He highlighted strong demand for Dalipal’s products, saying the company produces state-of-the-art pipe manufacturing technologies using artificial intelligence (AI), offering an advantage over existing manufacturers in the region.

Al Ghalayini noted that Aramco approved the company as a supplier, and it will supply products from China until the Saudi factory is built. The factory is expected to start the construction process by the end of this year, and it will take about two years to complete.

The project, costing a total of $2.1 billion, will be financed through a capital increase to be carried out in two phases.

During the Capital Markets Forum in Riyadh last week, a memorandum of understanding (MoU) was signed between BMG Financial and Dalipal to kick off the dual listing process on the Saudi Exchange (Tadawul) this year, subject to regulatory authorities’ approvals.