Over the last decade, the company has evolved from a trading and product supplies company to a solution provider by continuously investing into developing local value content, Manoj Tripathy of KI&E tells OGN

Kanoo Industrial & Energy (KI&E), a key division of Yusuf Bin Ahmed Kanoo Group and a significant player in the region’s energy industry, has always laid strong focus on localisation in Saudi Arabia and the wider region by continuing to set up local manufacturing facilities, collaborations and joint ventures with international partners.

This is in line with Saudi Vision 2030 and other localisation initiatives, such as Aramco’s in-kingdom total value add (IKTVA) programme and adds real value to its offerings amidst an evolving energy landscape.

Under the leadership of Ali Abdulla Kanoo, Deputy Chairman, Yusuf Bin Ahmed Kanoo, KSA and Fahad Kanoo, Vice President of Kanoo Industrial & Energy, the business has evolved over last decade from a large trading and product supplies company to a solution provider by continuously investing into developing local value content whether it is in product supplies or in providing services.

Manoj Tripathy, the CEO of Kanoo Industrial & Energy, cites their facility in Jubail as example of this commitment.

Ali Abdulla Kanoo and Fahad Kanoo (right) ... transforming the company into a solution provider

'We are developing this 8,000-sq-m state-of-the-art facility for the maintenance of all kinds of rotating equipment and specific drilling equipment,' he says.

Tripathy also realises that predictive maintenance is becoming a game-changer in asset maintenance, particularly for downstream plants with ageing assets.

'We have recognised the importance of this shift and are diving headfirst into AI and machine learning to revolutionise predictive maintenance,' he says.

Through such initiatives, KI&E is not only bolstering the local Saudi industry, but it also adds to industrial diversification.

In fact, Kanoo has been a pioneer in driving localisation for decades.

Its first JV with Halliburton to locally produce drilling ores, such as barite and bentonite, was set up in Saudi Arabia almost 44 years ago.

The company has ever since actively sought opportunities to localise more manufacturing and service capabilities either as developers or investors.

Additionally, KI&E is also empowering local workmanship. Its in-house project team continues to develop local vendors for manufacturing and services as part of its commitment to growing the value of local content.

Another testament is its in-house valve assembly and manufacturing unit in Dammam, which has an approved plant ID from Aramco.

It is also in the process of localising the manufacturing of ultrasonic flowmeters for flared gas under a licensing agreement from one of its global partners.

One of Kanoo's services is power TR testing

Under a new agreement last month, the company will manufacture – including engineering, assembly and testing – of flare gas flowmeters in Saudi Arabia under license from SICK, Germany.

KI&E’s Dammam team will also provide installation and commissioning of the flowmeters at the hands of trained and certified engineers from the German company.

'We are passionate about encouraging our partners to identify areas that can be localised in addition to our own plan to expand our service capabilities in the diverse segments in which we operate to drive the localisation of capabilities within the kingdom,' Tripathy explains.

Furthermore, the company will soon finalise a partnership agreement with a 3D services company to support the industrial sector in developing the localisation of the supply chain through on-demand additive manufacturing.

Speaking of partnerships, Kanoo has over 35 JVs across the region with leading companies in diverse segments, such as Haliburton, Maersk, AkzoNobel, BASF and Exxon Mobil (Infineum).

These joint ventures serve as catalysts for innovation and growth and have allowed Kanoo to tap into their expertise and leverage their global networks.

'For over 40 years, our JV with Halliburton has positioned us as a major player in the drilling fluid manufacturing business, while our partnership with Maersk has propelled us in the maritime industry. These ventures, along with others, enable us to expand our capabilities, explore new markets and deliver exceptional value to our customers,' says Tripathy.

Kanoo's roteq workshop will serve all industries

The company recently added two new JVs to its portfolio: Manuchar, global chemical sourcing company from Belgium; and CleanMax, a Brookfield Renewable company and an Asian leader in the rooftop solar business.

A segment KI&E has made a strong mark in is the heavy equipment rental business.

Through long-term leasing, the company provides a compelling value proposition to major industry players, such as Aramco, with which it has contacts that extend over 10-15 years.

'We handle the heavy equipment so they can focus on what they do best,' says Tripathy.

KI&E currently boasts a fleet of over 1,300 machines and has plans to expand this by another 1,000 units as demand grows.

Its strong value proposition is not only the diversity of the equipment but operating and maintaining the machinery as well.

Additionally, with workshops and skilled personnel spread across the region, customers are ensured of full-time availability for service and breakdowns.

POWERING A SAFER FUTURE THROUGH CLEAN ENERGY

Kanoo has made a strong commitment to boosting clean energy in the Kingdom and helping it achieve its net-zero goal.

It started at home when it took a bold decision to exit the fossil-fuel based power business and transition into renewable energy.

In pursuit of its commitment, the company provides sustainable solar solutions to customers in Saudi Arabia and Bahrain through its JV with CleanMax.

But that’s not all. Kanoo offers zero-investment solar solutions, where it invests, installs and operates the solar power plant at the customer’s premises and in turn offers energy on a 20-year power purchase model.

Separately, KI&E is actively involved in offering pipeline natural-gas-based power solutions as it realises the key role gas will play in the industrial sector.

In partnership with leading OEMs providing gas-engine and turbine solutions, the company offers high-efficiency gas-based BOOT and EPC power solutions. These include combined cooling, heat and power (CCHP) solutions that offer efficiencies of more than 90 per cent.

A remarkable achievement it made here was with the commissioning of a 13-MW gas-engine plant on a BOOT basis in Ras Al Khaimah, the UAE.

The company has also been awarded another EPC contract for a 16-MW CCHP project in Abu Dhabi, while work is on a pipeline in Saudi Arabia as well.

'Through these solutions, Kanoo Energy helps clients reduce their carbon footprint and optimise their energy usage,' says Tripathy.

Furthermore, KI&E is exploring ground-breaking solutions in the increasingly important carbon capture segment.

It is collaborating with UK-based Carbon Clean, which is pioneering modularised and containerised carbon capture systems, to install the region’s first modular carbon capture unit at Adnoc.

In conclusion, Kanoo maintains its position of a trailblazer in the industry, and it is constantly pushing the boundaries of innovation. What sets its apart is its unwavering commitment to diversification.

'At Kanoo, we embrace the spirit of a challenger, combining our extensive business portfolio with an unwavering commitment to innovation. By staying agile, investing in innovative technologies, and expanding our horizons, we continue to shape the industry and deliver sustainable excellence to our clients,' concludes Tripathy.