Perma-Pipe wins $43 million project contract in controversial GCC deal
- Perma-Pipe International Holdings, Inc. announced a formal award for a significant development project in the GCC region.
- The project, worth over $43 million, will involve thermal insulation and anti-corrosion services starting in the third quarter of 2025.
- This contract reflects Perma-Pipe's strong market position and successful track record in the oil and gas sector.
On January 10, 2025, Perma-Pipe International Holdings, Inc., a company based in Texas, announced that it received a formal letter of award for a significant development project located in the Gulf Cooperation Council (GCC) region. This project involves providing thermal insulation, anti-corrosion coatings, and other services, and is valued at more than $43 million. Work for the project is set to commence in the third quarter of 2025, demonstrating the company's commitment to the regional market. Saleh Sagr, the Senior Vice President for Perma-Pipe’s Middle East and North Africa (MENA) region, emphasized the significance of this contract, highlighting the company’s history of successfully executing numerous development projects within the region. He attributed the award to their innovative coating solutions which are tailored for technically intricate projects. The company's strategic positioning and successful past projects played key roles in securing this contract, showcasing their adaptation to the high demands of the oil & gas sector in the GCC. David Mansfield, President and CEO of Perma-Pipe, discussed the broader implications of this contract within the context of their business strategy. He noted that this award showcases the relevance of Perma-Pipe’s technologies across various geographies, especially in oil and gas markets which are expected to remain highly active. Furthermore, Mansfield linked the new contract to a trend of increasing large-scale project activity that the company is witnessing globally, which strengthens their strategic backlog as they enter 2025. This announcement comes at a time when the company is focusing on expanding its operations globally and enhancing its service offerings. As Perma-Pipe continues its operations in six countries, they are resiliently facing challenges such as fluctuating natural gas prices and supply chain management, which they believe will empower them to continue their growth trajectory in the competitive landscape of pre-insulated piping and leak detection systems.