Nass sees India as promising market
MANAMA, March 31, 2016
Bahrain’s Nass Industrial Services (NIS) has gained a strong foothold in India’s industrial sector with the successful implementation of a contract from conglomerate Reliance Industries Ltd (RIL).
NIS, also known as Nass Mechanical Contracting Company, recently shipped to RIL 36-inch-diameter, 70-mm wall thickness pipe spools of carbon steel and alloy steel with pressure of 273 bar and temperature of 425 deg C service factor under a $10-million contract. The total length was approximately 20 km.
“The job met very critical and severe cyclic service requirements for super saturated steam of Reliance’s J3 project expansion project,” commented NIS general manager GK Roy. J3 encompasses the construction of a refinery and petrochemical complex in Jamnagar, Gujarat state.
“The project was completed in record time. Very satisfied, they gave us a repeat order of nine pressure vessels which we are executing,” said Roy. Each vessel is of 60 tonnes and two will be jacketed. The order is worth $1.8 million.
Roy said the Reliance deals were paving the way for greater involvement in the large Indian market. The company has won approval from a major Indian public sector construction firm, Engineers India Limited (EIL), and is also regularly receiving enquiries from prominent firms such as Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petrochemicals. “This is a recent phenomenon and it is solidifying our standing in the Indian market,” remarked Roy. “Bahrain, being a small country, we have to compete overseas.”
OTHER OVERSEAS MARKETS
NIS is currently working on a deal worth SR100 million ($26.67 million) that entails an electromechanical construction package of Saudi Electricity Company’s PP-13 project. Under a subcontract awarded by Gama Power System, NIS’ scope includes the erection of a gas turbine generator and three heat recovery steam generator (HRSG) packages.
Also ongoing in Saudi Arabia is a SR17 million ($4.53 million) contract for Al Qaryan Steel Rolling Mill in the Eastern Province. NIS’ scope includes erection of piping and pipe systems and work is in its final stages.
In recent years, the company has worked on several jobs for Sadara, the joint venture between Saudi Aramco and The Dow Chemical Company, including the fabrication and erection of nine tanks and delivery of pipe spools and pipe supports for the propylene oxide plant in Jubail.
Among its achievements are mechanical works accomplished for STBLOP (Saudi Technology Base Lube Oil Plant) for the process and utility units, and equipment delivered included 22 pressure vessels and 30 storage tanks.
The company is working on gaining approvals from Saudi Aramco, Kuwait National Petroleum Company (KNPC) and Petroleum Development Oman (PDO).
It has been receiving requests for quotes from the GCC region. Roy says it is constrained by yard capacity in taking up a larger number of jobs all at once and hence is considering enlarging its fabrication facilities. “We’re keen on moving from low-value items to technically sophisticated, value-added, high-worth jobs,” he said.
The company is in the process of bidding for high-value jobs entailing heavy wall thickness pipes of alloy steel in West Africa and is expecting one or two to come its way. It is eyeing the US and European markets. The company has received approval from Fluor USA and hopes to win some of the jobs in a huge backlog of projects worth $20 billion it says Fluor has.
“NIS has been recognised in the market as one of the manufacturing companies in Bahrain where quality can be trusted, delivery comes on time and no defaults occur. We have developed a qualified staff and have sophisticated in-house designing,” said Roy.
“NIS is growing steadily and improving the bottomline. In spite of the market for our industry not being conducive in the present circumstances, we have seen projects coming to us.”
Roy joined NIS in 2013 and helped mastermind the company’s turnaround that has led to profit generation over the past three years.
THE HOME MARKET
In Bahrain, NIS is erecting a grinder unit with capacity of 1,500 tonnes for Falcon Cement’s expansion project. The order came directly from Falcon and the unit is to be commissioned shortly.
Among the high-value orders NIS is currently working on is one awarded by the Electricity and Water Authority (EWA) and worth BD14 million ($37.14 million). The project entails two schemes – the Central Unit and Hidd Lot B – and NIS is fabricating 10 ground storage tanks (GSTs) of capacity of 5 million gallons (mg) as well as four elevated storage reservoir (ESR) units of 1 mg and 40 m height. The company will complete its work in the second half of 2017.
NIS also sees maintenance services as a good revenue-earner in the future, particularly in the oil, gas and petrochemical sectors of the region. In Bahrain it has experience in performing maintenance for Bahrain Petroleum Company (Bapco) and Gulf Petrochemical Industries Company (GPIC) and was assigned to do turbine overhauling at the Hidd power plant. – TradeArabia News Service