(MENAFN- The Arabian Post)

Abu Dhabi-listed NMDC Energy PJSC has opened a new branch in Taiwan and established a commercial office in Shanghai as it taps deeper into the Asian energy services market and seeks to strengthen its upstream supply-chain links. The company confirmed the Taiwan branch and Shanghai office during its latest expansion move.

The move follows NMDC Energy's award of a US $1.136 billion engineering, procurement and construction contract in Taiwan in January for a subsea pipeline project requiring 111 kilometres of pipeline installation offshore that island. By mounting a physical presence in Taiwan and China, the company appears positioned to capture more work in Southeast Asia and better align its supply-chain and vendor relationships in the region.

According to NMDC Energy, the Taiwan branch will facilitate closer proximity to its major contract and future opportunities there, while the Shanghai commercial office will support sourcing and vendor management in China - a key supplier base for global energy-services firms. The company also disclosed a partnership with CITIC Steel, China's second-largest steel producer, aimed at securing high-quality, reliable supply channels.

Chief Executive Eng. Ahmed Al Dhaheri describes the Chinese and Taiwanese expansion as“a strategic enhancement of our regional capabilities and vendor ecosystem,” notably ahead of an expected surge in Asia-Pacific offshore and onshore energy infrastructure work. The company's investor presentation earlier flagged Southeast Asia as a“high-potential” region in its geographical expansion plan.

NMDC Energy specialises in offshore and onshore EPC and fabrication work. Its facilities include major yards in Abu Dhabi and Saudi Arabia, capable of handling heavy modularisation and offshore platforms. The company has also publicised plans to participate more actively in the energy-transition domain, including offshore wind and hydrogen.

See also Dubai's Property Market Faces Growing Supply Mismatch

Analysts say the expansion makes strategic sense because Taiwan's energy mix transition and China's massive fabrication supply-chain both represent structural growth areas for EPC firms. For example, the Taiwanese contract includes pipeline work for a facility bringing in 2.3 million tonnes of natural gas per year, helping that market switch away from higher-emission fuels.

That said, execution risks remain material. Operating in Asia implies navigating varied regulatory regimes, local supply-chain competition and currency- and geopolitical-risk dynamics. Some sources caution that opening new branches and offices alone will not guarantee project awards - local stakeholder relationships and track records matter. The CITIC Steel partnership may help mitigate some of those risks by providing trusted steel-materials sourcing for future fabrication work.

The shift also signals that NMDC Energy is diversifying beyond its core Gulf region. While the Middle East remains its backbone, growth in Southeast Asia and China offers new avenues. The Taiwan and China presence may enable the firm to bid for Asian contracts more nimbly, bring down costs through local sourcing and reduce logistics overheads - important for large-scale offshore modules and subsea pipelines. On its most recent financials, the firm indicated a strong international backlog and higher revenue momentum.

In terms of competition, NMDC Energy will face rivals ranging from Asian EPC contractors to European and American firms shifting focus to Asia-Pacific. The firm's ability to leverage its fabrication assets and prior Gulf-region execution experience will be a differentiator, but it must also adapt to Asia-Pacific norms, procurement practices and cost pressures. The supply-chain partnership with CITIC Steel may be a strategic asset in that regard.

See also GCC Bond Market Sees Surge in Borrowing Activity

Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.

MENAFN20112025000152002308ID1110375259