Remarkable opportunities

Saudi Arabia

Hamad bin Quraya, CEO of Bin Quraya Construction, talks to The Energy Year about Saudi Aramco’s aggressive growth plan in regards to liquids-to-chemicals capacity and the diversity and competitiveness of the company's services. Bin Quraya is a Saudi EPC company and supplier of construction equipment operating within the oil and gas sector.

What are the key takeaways of Saudi Aramco’s aggressive growth plan to expand its liquids-to-chemicals capacity to up to 4 million bopd by 2030?
This programme supports the creation of a world-leading downstream sector built on four key drivers: maximising value from Saudi Arabia’s crude oil production via integration across the hydrocarbons chain, enabling the creation of conversion industries to produce semi-finished and finished goods to help diversify the economy, developing advanced technologies and innovation, and enabling sustainable development.
The integrated industrial complex to convert crude oil to chemicals will produce less expensive chemicals while at the same time reducing their carbon footprint. It is located in Yanbu, and will feature an innovative configuration that allows it to process 400,000 bpd of crude oil, producing around 9 million tonnes of chemicals annually. It will also raise the chemical production level per barrel from the regular 8-12% to 50%.
The complex is expected to increase Saudi Arabia’s GDP by 1.5% and create an estimated 30,000 direct jobs by 2030.

How would you describe the scope of your activities?
Our EPC division provides solutions in the energy and industrial markets for many well-recognised businesses in Saudi Arabia and around the world. We are committed to excellence and ensure our core values of safety, environment, quality and integrity align with every EPC contract engagement.
Our range of services includes the rental of specific types of equipment, one of the most powerful lifting capacities in Saudi Arabia, construction and maintenance of facilities, and fast-moving services in terms of accommodation and rigging.
We serve companies across a broad range of industries and sectors. We know the importance of providing a collaborative approach, industry-specific knowledge and a comprehensive skillset that allows us to guide our clients in responding to industry innovations, new trends and market expectations.

Which are the preferred types of projects for Bin Quraya?
While we do service the existing upstream activities, we also use our expertise to build all types of greenfield projects, including pipelines for water, mining, oil and gas, and storage for crude oil and LNG, as well as for NGLs such as butane, propane, ethane and ethylene.
Our turnkey expertise includes terminal construction, prefabrication, site work, piping and manifolds, electrical, foundations, power services, fire protections, coatings and structural steel, as well as FEL [front-end loading], FEED and detailed design-engineered equipment. We have extensive experience in upgrading, expanding and completing retrofits at plants and terminals.

What are the company’s credentials in terms of engineering?
Bin Quraya and its partners’ services include site feasibility studies, FEED, design and supply, turnkey EPC project delivery, vessel design and specification, construction field service management, 3D plant design and construction and structural assessments.
During the company’s 50 years of service, we have consistently delivered and executed projects within budget, meeting or exceeding our customers’ expectations with an unwavering commitment to safety and the environment.

What type of strategy did you use to build the 63-kilometre pipeline adjacent to the Khurais gas plant?
The construction strategy was to double joint the 12-metre pipes and utilise a fully automatic 24-metre field mechanised welding system, advanced ultrasonic testing for the welded joints, field joint internal and external coating, and a robotic crawler for cleaning and coating inspections.
The construction strategy allowed Bin Quraya to complete the scope in six months. The project was completed ahead of time, below budget and with complete client satisfaction.
The scope of work is for a 63-kilometre, 16-inch internal coated line, one above-ground transition area with valve control, two spare nozzles, two horizontal directional drilling crossings for an asphalt road and a railway crossing, 29 road crossings and 27 crossings between different owners.

What are the main challenges and opportunities for heavy equipment rental companies as they increase their fleets under the current downstream expansion?
The expansion of the SATORP [Saudi Aramco Total Refining and Petrochemical] refinery and the Amiral Complex, set to be completed in 2027, offer a great opportunity for the expansion of our fleet in terms of heavy-duty vehicles designed specifically for carrying out construction projects.
We own more than 400 cranes of up to 800 tonnes of lifting capacity and 3,500 pieces of heavy equipment. Bin Quraya is a leading supplier of construction equipment rentals for EPC and construction companies in the region, and we offer a wide range of equipment with operators and riggers supporting a one-stop shop for a full range of services.
The current situation and the amount of available work in Saudi Arabia has presented tremendous opportunities for equipment rental companies in the market. There is a potential for more work, but there are risks and challenges as well.
The interruption in the supply chain would be one of the main challenges that rental companies face. The increased demand for plants, machinery and vehicles together with the backlog from previous years is adding significant pressure to the OEMs. The huge demand for global logistics support with the current shortage of vessels and shipping containers might lead to delays in some of the local projects.
Also, the shortage of an experienced workforce and the increased fluctuation of the market rates will add more risks to rental companies, especially when it comes to committing to long rental durations. Rising interest rates are another risk that must be considered.
However, with a strong strategic plan, rental companies can secure more work and, at the same time, ensure business stability and continuity in the future. There are remarkable opportunities for the infrastructure projects throughout Saudi Arabia.

In line with Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) programme, what are the prospects for expanding Bin Quraya’s localisation efforts?
Bin Quraya is working with more local suppliers and providing them with training; procuring local manufactured materials for use in our projects and internal use; supporting our local suppliers to achieve more points on IKTVA; focusing on the hiring, training and development of Saudi nationals; and filling key positions with Saudi talent in various vacant positions within the organisation.
Bin Quraya’s localisation efforts have led the company to achieve a local content score of 79%, which is among the highest in Saudi Arabia.

What are the mid-term objectives for Bin Quraya in 2023 and beyond?
There are many great opportunities for Bin Quraya in 2023 and beyond. Our mid-term objectives for these opportunities are to upgrade the company-wide facilities and support services, enhance our procurement and warehouse management systems and upgrade the company’s fleet of assets, with the main focus being on safety and the environment.

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