electrical & instrumentation investment ... - saudi...

Saudi Aramco: Public

Electrical & Instrumentation

Investment OpportunitiesNovember 2018


The next slides contain forward-looking statements regarding future events based on current

expectations, estimates, forecasts, and projections. The data is subject to updating, revision, further

verification and amendment without notice. No reliance may be placed for any purpose on the

information or opinions contained in this presentation or any other document or statement, or on the

completeness, accuracy or fairness of such information or opinions therein. No representation or

warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or

any other person as to the accuracy or completeness or fairness of the information or opinions

contained in this presentation and no responsibility or liability is accepted by any of them for such

information or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any

communication written or otherwise, contained or referred to in this presentation.

Disclaimer


Drives domestic value creation by working with suppliers for mutual benefits

Envisions to improve investment, and maximize long-term economic growth and diversification

Focuses on delivering quality jobs, advancing innovation and enhancing global competitiveness

IKTVA is designed to reward Saudi Aramco’s suppliers for the use and development of local labor and sub-suppliers

Localization is a focus for the KSA – Saudi Aramco’s IKTVA program aims to achieve

70% local content by 2021


Agenda – Instrumentation Investment Opportunities

No. Title of the Investment Opportunity Presenter

1 Multiphase Flowmeters Khaled Al-Ghadhban

2 Analyzer Systems for Oil and Gas Khaled Al-Ghadhban

3 Actuators for Valves Khaled Al-Ghadhban

4 Vibration Monitoring Systems Khaled Al-Ghadhban

5 Custody Flowmeters and Flow Computers Khaled Al-Ghadhban

6Pressure Transmitters and Process

FlowmetersAbdulkarim Al-Dayhan

7 Level Transmitters Abdulkarim Al-Dayhan

8 Temperature Transmitters Abdulkarim Al-Dayhan

9 Control Cabinets Abdulkarim Al-Dayhan


Multiphase Flowmeters


Establish state of the art

manufacturing facilities for

Multiphase Flowmeters to

serve growing KSA and GCC

demand.

Additional opportunities for

SMEs to manufacture

component casting, CNC,

precision machining, etc.

The opportunity

1. KSA market size was

estimated at $50 MM in

2018.

2. Forecasted ~7% annual

growth in KSA and GCC.

3. GCC expected market size

for Multiphase Flowmeters

is expected to reach $115

MM by 2023.

The business case

Multiphase flowmeters present an attractive investment opportunity

Source: Saudi Aramco analysis


There is an opportunity for SMEs to manufacture components of multiphase flowmeters

Example MPFM using Venturi & Tomography



There is an opportunity for SMEs to manufacture components of multiphase flowmeters

Example

ΔP

P

T

Detector

Detector

Housing

Source

Assembly

Source Housing

Assembly

Venturi Hub

MPFM using Venturi & Dual Energy Fraction meter


Saudi Aramco: Public9

KSA market for multiphase flowmeters (MPFMs) has been growing and was

estimated to be valued at $50 MM in 2018

3639

4246

50

20162015 2017 2018

+28%

2014

KSA’s demand of MPFM

has largely been met through

imports

The current MPFM market in

KSA was valued at $50 MM

and it has been growing at

~7% annually

KSA estimated market size for MPFM in ($ MM)



GCC expected market size for MPFMs is expected to grow at a

7% annual rate, reaching $115 MM by 2023

GCC expected market size for MPFM in $MM

53 57 61 65 70

34 37 39 42 45

2021

100

2019

8794

2020

7%

115

2022 2023

107

Rest of GCC

Saudi Arabia

KSA market demand is expected to be around 60% of the overall GCC demand for MPFMs



• Design by a centralized team in KSA.

• KSA steel capacity to expand into additional grades of steel.

• Venture meters

• Sensors

• Electronic enclosures

• Termination boxes

• Process piping

• No local manufacturers.

• Major opportunity for in-Kingdom manufacturing.

• Preventive/corrective maintenance

• Technical support.

• Consultation.

• Spare parts.

• Training & Capability Development.

• Testing.

Design Raw materials Components ManufacturingOperations & maintenance

Localization potential exists at most stages of the MPFM value chain



Analyzer Systems

for Oil and Gas




Analyzer Systems to serve

growing KSA and GCC

demand


SMEs to manufacture

components such as probe,

enclosure, transport line,

transmitters, etc.

The opportunity



2018.




for Analyzer Systems is

expected to reach $286 MM

by 2023.

The business case

Analyzer Systems present an attractive investment opportunity



Types of Analyzers

Example

Water quality Conductivity Moisture

1. Measures the quality of

process or waste

2. It can be pH, dissolved

oxygen, ORP, oil in water

analyzer, etc.

3. Simple in design with main

components of transmitter and

sensor probe.

1. Measures conductivity of

process medium to determine

the ionic content of the

process.

2. Simple in design and consists

of transmitter and

conductivity sensor / probe.

1. Measures dew point or

amount of moisture presents in

a process medium.

2. Most common measurement is

based on aluminum oxide

technology.

3. Are quartz crystal and tunable

diode laser, depending on

application.

Main applications of analyzers

1. Product quality

2. Process monitoring and/or control

3. Emission monitoring, control and/or enforcement



There is an opportunity for SMEs to manufacture components of

Analyzer Systems

Example

• Analyzers transmitters

• Analyzer sampling systems

(probe, shelters, HVAC, etc.)

• Sensors

1. pH sensors

2. Conductivity sensors

3. Dew point sensors



20162015 2017 20182014

KSA’s demand of Analyzer

Systems has largely been

met through imports

The current Analyzer

Systems market in KSA was

valued at $150 MM and it has

been growing at ~3%

annually

KSA estimated market size for Analyzer Systems (in $MM)

132

136

141

145

150

+12%

KSA market size for Analyzer Systems has been growing and was estimated

to be valued at $150 MM in 2018



GCC expected market size for Analyzer Systems (in $MM)

154 159 163 168 173

100 103 106 109 113

2021

269

2019

254 262

2020

3%

286

2022 2023

277

Rest of GCC

Saudi Arabia

KSA market demand is expected to be around 60% of the overall GCC demand for Analyzer Systems

GCC expected market size for Analyzer Systems is expected to grow

at 3% annual rate to reach $286 MM by 2023



•Design by a centralizedteam in KSA.

•KSA steel capacity toexpand into additionalgrades of steel.

•Probe.

•Sample transport.

•Sensors.

•Transmitter.

•No local manufacturers.

•Major opportunity for in-Kingdom manufacturing.

•Consultation.

•Spare parts.

•Training and capabilitydevelopment.

•Testing.


Localization potential exists at most stages of the Analyzer Systems value chain



Actuators for Valves




Actuators to serve growing

KSA and GCC demand


SMEs to manufacture

components such as casing,

springs, drive trains, and

gear boxes, etc.

The opportunity



2018.




for Actuators is expected to

reach $190 MM by 2023.

The business case

Actuators present an attractive investment opportunity for manufacturers and SMEs



Types of Actuators


Pneumatic ElectricElectro-Hydraulic /

Hydraulic

• Utilize compressed air or gas as a motive force to position the valve.

• Spring & Diaphragm type or Piston type.

• Mostly used for control application and are extremely simple in design.

• Uses electrical power as a motive force to position the valve.

• Can be used either with AC or DC.

• It consists of motors & gear trains and is available for wide range of torque outputs.

• Are electric actuators where motors pump oil at high pressure to piston which creates the motive force.

• Hydraulic actuators utilizes oil to provide the motive force, and is generally used in areas with no compressed air or electricity.


Types of Actuators

Example


Saudi Aramco: PublicSource: Saudi Aramco analysis

20162015 2017 20182014

KSA’s demand of Actuators


imports

The current Actuators market

in KSA was valued at $100

MM and it has been growing

at ~3% annually

KSA estimated market size for Actuators (in $MM)

88

91

94

97

100

KSA market size for Actuators has been growing and was estimated

to be valued at $100 MM in 2018

+12%


GCC expected market size for Actuators (in $MM)


103 106 109 112 115

66 68 71 73 75

2021

180

2019

169 174

2020

3%

190

2022 2023

185

Rest of GCC

Saudi Arabia

KSA market demand is expected to be around 60% of the overall GCC demand for Actuators

GCC expected market size for Actuators is expected to grow at

a 3% annual rate, reaching $190 MM by 2023


•Design by acentralized team inKSA.


•Casing.

•Gears.

•Diaphragms.

•Springs, etc.

•Limited number oflocal manufacturers.

•Major opportunity forin-Kingdommanufacturing.

•Consultation.

•Spare parts.

•Onsite and off-site support.


Localization potential exists at most stages of the Actuators value chain



Vibration Monitoring

Systems




Vibration Monitoring

Systems to serve growing

KSA and GCC demand


SMEs to manufacture

components such as

sensors, extension cables,

drivers, etc.

The opportunity



2018.




for Vibration Monitoring

Systems is expected to


The business case

Vibration Monitoring Systems present an attractive investment opportunity



Introduction

• Protection system to prevent damage to machinery.

• Prevent loss of production and occupational hazard.

• Monitors and senses any unintended and undesirable vibrations.

• Condition Monitoring System (CMS) for diagnostic and predictive maintenance.

What is the physical nature of vibration?

Why it is important to measure vibration?

• Vibration is an oscillation or repetitive motion

of an object from its equilibrium position.

• It can be felt, touched and sometimes can

create sound and heat.

• Two characteristics of vibration are amplitude

and frequency.

• The vibration can be caused by repetitive force,

looseness and resonance.

Example



There is an opportunity for SMEs to manufacture components of Vibration Monitoring

Systems

Example VMS components

Seismic Probe

Temperature Sensor

Eddy Current Probe

VMS Rack

ESD

DCS

CMS



20162015 2017 20182014

KSA’s demand of VMS has

largely been met through

imports

The current VMS market in

KSA was valued at $80 MM

and it has been growing at

~3% annually

KSA estimated market size for VMS (in $MM)

70

73

75

77

80

+12%

KSA market size for Vibration Monitoring Systems (VMS) has been growing and was




GCC expected market size for VMS (in $MM)

82 84 87 90 92

53 55 56 58 60

2021

143

2019

135 139

2020

3%

152

2022 2023

148

Rest of GCC

Saudi Arabia

KSA market demand is expected to be around 60% of the overall GCC demand for Vibration Monitoring Systems

GCC expected market size for Vibration Monitoring Systems is expected

to grow at a 3% annual rate, reaching $152 MM by 2023



•Design by a centralized team in KSA.

•Cables and steel manufacturing.

•Additional materials could be sourced in the near future such as sensor coil, oscillator circuit and electronic components.

•Printed circuit boards.

•VMS cables.

•VMS rack casing.

•VMS cabinets.



•Consultation.

•Spare parts.

•Training and capability development.

•Testing.


Localization potential exists at most stages of the Vibration Monitoring

Systems value chain



Custody Flowmeters

and Flow Computers




Custody Flowmeters & Flow

Computers to serve growing

KSA and GCC demand


SMEs to manufacture

components such as meter

body, reflector ring, shaft,

pickup coil, etc.

The opportunity



2018.




for Custody Flowmeters &

Flow Computers is


by 2023.

The business case

Custody Flowmeters & Flow Computers present an attractive investment opportunity



There is an opportunity for SMEs to manufacture components of Custody Flowmeters

ExampleCustody Flowmeters components



Main applications of flow computers

Example

1.Configuration

2.Calculation

3.Meter Runs

4.Provers

5.PID control

6.Measurement Fidelity

7.Programmable space

8.Measurement Access

Panel-Mounted Flow Computers

Flow Computers components



KSA market size for Custody Flowmeters and Flow Computers has been growing and

was estimated to be valued at $140 MM in 2018

20162015 2017 20182014

KSA’s demand of Custody

Flowmeters & Flow

Computers has largely been

met through imports

The current Custody

Flowmeters & Flow

Computers market in KSA

was valued at $140 MM and it

has been growing at ~3%

annually

KSA estimated market size Custody Flowmeters & Flow Computers (in $MM)

123

127

131

135

140


+13%


GCC expected market size for Custody Flowmeters & Flow Computers is expected to

grow at a 3% annual rate, reaching $267 MM by 2023

GCC expected market size Custody Flowmeters & Flow Computers (in $MM)

144 148 152 157 162

93 96 99 102 105

2021

251

2019

237 244

2020

3%

267

2022 2023

259

Rest of GCC

Saudi Arabia

KSA market demand is expected to be around 60% of the overall GCC demand for Custody Flowmeters & Flow

Computers




•KSA steel capacity to expand into additional grades of steel.

•Meter body.

•Reflector ring.

•Shaft, pickup coil.

•Printing circuit board.

•Enclosure case.


•Major opportunity for in-Kingdom manufacturing and provide programming services.

•Consultation.

•Spare parts.


•Testing.


Localization potential exists at most stages of the Custody Flowmeters & Flow

Computers value chain



Pressure Transmitters

and Process Flowmeters




Pressure Transmitters &

Process Flowmeters to serve

growing KSA and GCC

demand


SMEs to manufacture

components such as o rings,

bolts, nuts, process flanges,

tubing, orifice plates, fittings,

valve manifolds, etc.

The opportunity



2018.




for Pressure Transmitters

& Process Flowmeters is


by 2023.

The business case

Pressure Transmitters & Process Flowmeters present an attractive investment

opportunity




Pressure Transmitters & Process Flowmeters

ExampleTypical Components



There is an opportunity for SMEs to manufacture components of Process Flowmeter

Example Orifice Plate

Tubing

3 or 5 way valves manifold

Differential Pressure Transmitter

Fitting

Orifice Plate

Typical Components



20162015 2017 20182014

KSA’s demand of Pressure

Transmitters & Process

Flowmeters has largely been

met through imports

The current Pressure

Transmitters & Process

Flowmeters market in KSA



annually

KSA estimated market size for Pressure Transmitters & Process Flowmeters (in $MM)

79

82

84

87

90

KSA market size for Pressure Transmitters & Process Flowmeters has been growing

and was estimated to be valued at $90 MM


+13%


GCC expected market size for Pressure Transmitters & Process Flowmeters (in $MM)

92 95 98 101 104

60 62 63 65 67

2021

161

2019

152 157

2020

3%

171

2022 2023

166

Rest of GCC

Saudi Arabia

KSA market demand is expected to be around 60% of the overall GCC demand for Pressure Transmitters &

Process Flowmeters

GCC expected market size for Pressure Transmitters & Process Flowmeters is

expected to grow at a 3% annual rate, reaching $171 MM by 2023





•Transmitters display.

•Bolt, nuts.

•Plate.

•Tubing.

•Fittings.

•Orifice plate.

•Valve manifold, etc.

•Limited number of manufacturers.


•Offer consultation.

•Spare parts.


•Testing.


Localization potential exists at most stages of the Pressure Transmitters

& Process Flowmeters value chain



Level Transmitters




Level Transmitters to serve

growing KSA and GCC

demand.


SMEs to manufacture

component bolt, nut, gasket,

flange, bypass chamber,

etc.

The opportunity



2018.




for Level Transmitters is


by 2023.

The business case

Level Transmitters present an attractive investment opportunity



Example

Main applications of Level Transmitters

• Guided Wave Radar (GWR) – mandatory requirement by Saudi

Aramco

• Common installation – install in a bypass chamber

• Main component – GWR sensor & bypass chamber

Process VesselsProduct/Crude Tanks



There is an opportunity for SMEs to manufacture components of Level Transmitters

Example

GWR components

GWR level measurement

GWR sensor and transmitter

GWR in a bypass chamber

Bypass chamber



20162015 2017 20182014

KSA’s demand of Level

Transmitters has largely

been met through imports

The current Level

Transmitters market in KSA



annually

KSA estimated market size for Level Transmitters (in $MM)

88

91

94

97

100

KSA market size for Level Transmitters has been growing and was estimated to be

valued at $100 MM in 2018


+12%


GCC expected market size for Level Transmitters (in $MM)

103 106 109 112 115

66 68 71 73 75

2021

180

2019

169 174

2020

3%

190

2022 2023

185

Rest of GCC

Saudi Arabia

KSA market demand is expected to be around 60% of the overall GCC demand for Level Transmitters

GCC expected market size for Level Transmitters is expected to grow at a 3% annual

rate, reaching $190 MM by 2023





•Level bypass chamber.

•Gasket.

•Flanges.

•Bolt.

•Nuts.

•No local manufacturing.


•Consultation.

•Spare parts.


•Testing.


Localization potential exists at most stages of the Level Transmitters value chain



Temperature

Transmitters




Temperature Transmitters to

serve growing KSA and GCC

demand


SMEs to manufacture

components such as gasket,

bolts, nuts, covers, etc.

The opportunity



2018.




for Temperature

Transmitters is expected to


The business case

Temperature Transmitters present an attractive investment opportunity



The Function of a Temperature Transmitter

Is an electrical instrument that interfaces a temperature

sensor (e.g., thermocouple, RTD) to a measurement or

control device (e.g., PLC, DCS, controller, etc.).

The transmitter amplifies and transmits the measured

temperature to signals (4-20mA or Foundation Fieldbus).

Common Temperature Sensors/Inputs:

• Thermocouple

• Resistance Temperature Detector




Temperature Transmitters

Example

Temperature Transmitters components



20162015 2017 20182014

KSA’s demand of

Temperature Transmitters


imports

The current Temperature

Transmitters market in KSA

was valued at US$62 Mn and

it has been growing at ~3%

annually

KSA estimated market size for Temperature Transmitters in (US$ Million)

54

56

58

60

62

KSA market size for Temperature Transmitters has been growing and

was estimated to be valued at US$62 million in 2018


+12%


GCC expected market size for Temperature Transmitters in (US$ Million)

63 65 67 69 71

41 42 44 45 46

2021

111

2019

104 107

2020

3%

117

2022 2023

114

Rest of GCC

Saudi Arabia

KSA market demand is expected to be around 60% of the overall GCC demand for Temperature Transmitters

GCC expected market size for Temperature Transmitters is expected to

grow at 3% annual rate to reach US$117 million by 2023





•Gasket.

•Bolt.

•Nut.

•Casing.

•Screws.

•Limited local manufacturers.


•Consultation.

•Spare parts.


•Testing.


Localization potential exists at most stages of the Temperature Transmitters

value chain



Control Cabinets




Control Cabinets to serve

growing KSA and GCC

demand


SMEs to manufacture

components, such as

cabinets, frames, door

locks, etc.

The opportunity



2018.




for Control Cabinets is


by 2023.

The business case

Control Cabinets present an attractive investment opportunity



Main applications of Control Cabinets

Consist of System and Marshalling Cabinets

Two type installations - Indoor or outdoor installations

System cabinet contains active components, such as DCS/ESD controllers,input/output cards, etc.

Marshalling cabinet contains passive components, such as Terminal Blocks, etc.



Example

There is an opportunity for SMEs to manufacture components of Control Cabinets

Control Cabinet Components

Cabinets and Accessories

Typical Cabinets



20162015 2017 20182014

KSA’s demand of Control

Cabinets has largely been

met through imports

The current Control

Cabinets market in KSA was

valued at $60 MM and it has

been growing at ~3%

annually

KSA estimated market size for Control Cabinets (in $MM)

5354

56

58

60

KSA market size for Control Cabinets has been growing and was



+13%


GCC expected market size for Control Cabinets (in $MM)

61 63 65 67 69

40 41 42 43 45

2021

107

2019

101 104

2020

3%

114

2022 2023

110

Rest of GCC

Saudi Arabia

KSA market demand is expected to be around 60% of the overall GCC demand for Control Cabinets

GCC expected market size for Control Cabinets is expected to grow at a 3%

annual rate, reaching $114 MM by 2023





•Metal plate.

•Frame.

•Key lock.

•Sealing.

•Bolt.

•Nuts.

•Limited number of local manufacturing.


•Consultation.

•Spare parts.

•Training and capabilitydevelopment.

•Testing.


Localization potential exists at most stages of the Control Cabinets

value chain



Published Electrical Investment Opportunities

No. Investment Opportunity Title

1 Current and Voltage Transformers (CT-VT) manufacturing

2 Electrical Fuses manufacturing

3 Circuit Breakers manufacturing

4 Relays manufacturing for industrial applications

5 UPS manufacturing for industrial applications

6 Batteries manufacturing for industrial applications

7 Electrical Inverters manufacturing

8 Low Voltage Motors manufacturing

9 Conduit and Fittings manufacturing

10 Smart Meters

Please visit the iktva website at www.iktva.sa to obtain more information on these opportunities

http://www.iktva.sa/


Key messages

In case you are interested in discussing these opportunities further, please contact

Please Direct All Inquiries To:

Khaled Al-Ghadhban

Business Development Engineer

Saudi Aramco

[email protected]

Office number: +966-13-8741417

Nasser AbuSaq

Business Development Engineer

Saudi Aramco

[email protected]

Office number: +966-13- 8742745

Identified nine investmentopportunities for localization in theinstrumentation sector.

Potential opportunities for SMEs tomanufacture some components andprovide services for these investmentopportunities.

Highlighted the published electricalinvestment opportunities that can befound in the iktva website.

We invite interested companies toengage with us and send us theirExpression of Interest to establish alocal manufacturing in Saudi Arabia.


Thank you

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