ST. LOUIS, MO (STL.News) – Aegion Corporation (NASDAQ:AEGN) today announced that United Special Technical Services, LLC (“USTS”), a joint venture between United Pipeline Systems, Inc., a subsidiary of Aegion (“United”), and Special Technical Services LLC (“STS”) of Oman, was awarded two contracts with a combined value of approximately $11 million (USD) from local contractors working for a large oil and gas pipeline operator in Saudi Arabia. United owns a 51 percent interest in the joint venture.
More than 25 miles of 42-inch diameter seawater transport pipelines will be rehabilitated using United’s Tite Liner® system, a high-density polyethylene (HDPE) liner. Upon completion, this will mark the largest pipe diameter to be lined in the Middle East since the Tite Liner® system was introduced in the region. In addition, teams will provide rotolining for pipe fittings from a newly commissioned USTS rotolining plant in Al Khobar. Rotolining is a method to apply seamless, bonded internal linings to metal parts like manifolds and valves, regardless of shape. This is the first rotolining plant in Saudi Arabia and the largest of its kind in the Middle East.
Charles R. Gordon, Aegion’s President and Chief Executive Officer, said, “These awards signal the start of an exciting runway for growth for the USTS business in Saudi Arabia and are the result of strong collaboration over the last several years with local contractors and operators. We have been operating safely in the Middle East for more than a decade and continue to see a strong project funnel for both our industrial linings and coatings businesses that will enable us to capture significant opportunities and earnings growth over the next two years as the region expands its oil and gas production capabilities.”
Work on these contracts is expected to begin in the fourth quarter of 2019 and continue for the next two years. Approximately 50 new jobs, including technicians, machine operators and supervisors, will be created over the course of the projects.