EIL eyes oil pipeline, storage projects in Saudi Arabia, UAE

Engineers India Ltd chairman and managing director Atul Gupta said the proposed pipeline projects in Saudi Arabia and the UAE could be worth around $1 billion, with a tentative gestation period of two-three years.

New Delhi: State-run Engineers India Ltd (EIL) is eyeing opportunities to develop crude oil and petroleum product pipelines and strategic oil reserves in Saudi Arabia and the United Arab Emirates (UAE), as both countries plan to expand energy infrastructure to bypass the Strait of Hormuz and add storage capacity, chairman and managing director Atul Gupta said.

Talking to reporters on Friday, Gupta said the proposed pipeline projects in Saudi Arabia and the UAE could be worth around $1 billion, with a tentative gestation period of two-three years.

"They (UAE and Saudi Arabia) are now planning for some infrastructure to bypass the Strait of Hormuz. We are also focusing on those infrastructure projects... We have already shown our interest that we can accelerate the process of creating the new infrastructure," he said.

"We anticipate more than $1 billion investment should be there in all these countries together for the immediate infrastructure in which two to three years is something they can aim for because in the case of these pipelines, the gestation period is two to three years," Gupta added.

The project management consultancy (PMC) and engineering, procurement and construction (EPC) major plans and executes long-distance cross-country pipelines to transport crude oil and petroleum products.

The UAE and Saudi Arabia currently have two pipelines to supply crude to the ports. The two pipelines—UAE's Abu Dhabi National Oil Company (ADNOC)-operated 360-km Habshan-Fujairah strategic oil pipeline with a 1.5 million barrels per day (mbpd) capacity that opens to the Gulf of Oman; and the Saudi Aramco-operated 1,200-km east-west crude oil pipeline with a 5 mbpd capacity that offers access to the Red Sea—have played a key role in supplying oil globally after the Strait of Hormuz was closed to shipping.

However, the east-west pipeline in Saudi Arabia has been targeted in recent attacks by Yemen-based Houthi rebels, severely disrupting the country’s oil exports. Both countries are now looking to expand their oil pipeline networks to bypass the Strait of Hormuz, a vital passage that carries about a fifth of global oil supplies under normal conditions and has remained closed since the US-Iran war began on 28 February.

In May this year, the UAE government announced that it will expand its ability to bypass the Strait of Hormuz and accelerate construction of a new ​oil pipeline to double its export capacity via the port of Fujairah by 2027.

Further, in July, Reuters reported that Saudi Arabia is considering expanding the capacity of its crude ​oil pipeline to the western Red Sea coast, enabling the kingdom and possibly neighbours ‌to transport more oil without crossing the Strait of Hormuz.

In February this year, Engineers India set up an office in Saudi Arabia. It already has an office in the UAE. A statement from EIL following its annual general meeting on Friday said: "EIL has also strengthened its presence in the Middle East with the operationalization of its office in the Kingdom of Saudi Arabia, supported by a long-term in-Kingdom services agreement with Saudi Aramco. The company continues to progress projects and engagements across Mongolia, Guyana, UAE, Bahrain, Algeria, Kuwait and other international markets, reinforcing its strategy of expanding EIL’s global footprint."

EIL said international business was a key growth driver in FY26, with overseas consultancy contributing about ₹4,929 crore, or nearly 62% of the fresh business secured by the company.

About the Author

Rituraj Baruah is a special correspondent covering energy, housing, urban affairs, heavy industries and small businesses at Mint. He has reported on diverse sectors over the last eight years including, commodities and stocks market, insolvency and real estate; with previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.

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