SPARK, Dalipal Sign $2.1bn Energy Pipe Deal in Dammam

A major energy-equipment manufacturing project is heading to the Dammam area after SPARK, King Salman Energy Park, signed a 25-year land-lease agreement with Dalipal Holdings for a large-scale pipe production facility.

Under the deal, Dalipal International for Industry Company, a wholly owned subsidiary of Dalipal Holdings, will develop the plant on a site measuring 1,030,916 square metres within the energy park. The total planned investment is about US$2.1 billion, equivalent to roughly SAR 7.875 billion, with a first phase valued at approximately US$600 million, or about SAR 2.25 billion.

The facility is set to produce seamless steel pipes for oil and gas wells, drill pipes, and hydrogen-transport pipes. These products are intended to serve the Saudi market as well as wider Middle Eastern and international markets.

Why it matters

The project adds to the industrial base taking shape at King Salman Energy Park, one of the Kingdom's flagship energy hubs near Dammam. For residents in the Eastern Province, large manufacturing investments of this scale typically signal new industrial activity and local economic momentum over the coming years as construction and operations ramp up.

The agreement is an industrial land lease between the two parties. It does not involve any public application process, government fees, visa procedures, or consumer pricing, and Saudi Living will share verified updates as the facility moves toward development.

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