Abdel Rahman Khabbaz, deputy general manager of Specialized Steel Valves (SPSV), talks to The Energy Year about the forecast for the Saudi valve market and how the development of the foundry industry in the country can impact local valve manufacturing. SPSV is a diversified manufacturer of valves.
How could the development of the foundry industry impact local valve manufacturing?
The crucial variable for localisation in our market is a good supply chain for all components. Having a strong supply chain will enable local manufacturing to be competitive for the local market and for exportation.
Aramco is actively supporting locals. They sometimes pay a part of the price difference between local manufacturing companies and international suppliers to benefit locals. They can help, but local companies should have competitive prices.
How did SPSV begin, and what is your core business?
We are a diversified manufacturer of forged and cast steel valves for the energy sector. SPSV is a Saudi Arabian entity that is fully controlled by Orion Valves Italy, an Italian family-owned private company. Orion is the technical partner.
Since 2012 we have been pioneers in localisation. At that time the localisation programme was called the Local Manufacturing Development Programme. Since then, we have been manufacturing gate, globe and check valves and supplying the major plants of Saudi Aramco, such as Fadhili, Ras Tanura, Haradh, Uthmaniyah, and recently Marjan, Abqaiq, South Ghawar and Jafurah.
The use of gate valves is very common in the oil and gas sector, especially in refineries and pipelines. Gate valves account for 65% of our sales, globe valves account for 20%, and the rest of our sales are for check valves. We also have capabilities in the machining, welding, assembly, testing, blasting and painting segments.
What is your strategy for diversifying your portfolio of products and services?
SPSV aims to have a much larger range of products manufactured in-country. To achieve this aim, we’ll gradually bring the whole range of Orion’s valves to Saudi Arabia. We’re already working on localising the manufacturing of cryogenic dual-plate check valves. We are processing the approvals and documentation to also localise API 6A certified valves, upstream valves, specially fabricated dual plates and many other products.
In addition to these products, SPSV is aiming to be the first manufacturer and integrator of high-integrity pressure protection systems (HIPPS) in Saudi Arabia. A HIPPS is a type of safety instrumented system designed to prevent over-pressurisation of a plant, such as a chemical plant or oil refinery.
We are also trying to become the pioneer in valve maintenance and service and to work as a reliable partner of Saudi Aramco in this segment.
How does Saudi Aramco’s manufacturing approval regulate the market?
Saudi Aramco’s approval is one of the most detailed approvals you can have. We have gone through approvals for ADNOC, KOC and Qatargas, and I can confidently say that the Saudi Aramco approval process is the most detailed.
We can supply a range of valves from 2-24 inches and pressure classes from 150-2,500 on gate, globe and check valves. No one else in the kingdom currently has this range of gate, globe and check valves.
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