(MENAFN- The Arabian Post)

Abu Dhabi-listed NMDC Energy has launched a full branch in Taiwan and a commercial office in Shanghai, marking a strategic move into the Asia-Pacific region to support its project pipeline and strengthen supply-chain relationships. The company also sealed a memorandum of understanding with CITIC Steel, one of China's largest steel producers, signalling a concerted effort to lock in reliable sourcing for its energy-services operations.

NMDC Energy's decision to establish a physical presence in Taiwan and China comes amid a wider growth phase. The Taiwan branch aligns with a major EPC contract awarded by Taiwan Power Company for subsea gas-pipeline construction and installation, valued at approximately AED 4.2 billion and involving 111 km of pipeline at depths between 10 and 55 metres off Taiwan's west coast. The Shanghai office is intended to advance vendor management and sourcing within China's industrial ecosystem.

The MoU with CITIC Steel came as NMDC Energy emphasised the importance of securing high-quality materials for its offshore and onshore EPC business. According to the agreement, the partnership is designed to provide NMDC Energy with reliable steel supply-channels, mitigating risk in the fabrications and modular systems that underlie many large-scale energy-infrastructure projects.

Financial data for the first nine months to September 2025 underscored the firm's momentum. Revenue rose 33% year-on-year to AED 13.0 billion and net profit reached AED 951 million, while international operations accounted for roughly 31% of total revenue during that period. The company's backlog stood at AED 45.6 billion, with a broader project pipeline of AED 61.4 billion. The Taiwanese contract and these Asia-Pacific office openings form part of a broader strategy to diversify beyond the Gulf region and capture growth in higher-potential markets.

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Analysts say the move addresses key structural shifts in the energy sector. Asia-Pacific is seeing heightened demand for energy-infrastructure investment, including offshore wind, subsea pipelines and modular fabrication assets. By positioning itself closer to supply-chains and vendor ecosystems in China and Taiwan, NMDC Energy seeks to reduce logistics costs, improve responsiveness and deepen access to regional project opportunities.

That said, execution risks remain. Establishing regional branches does not guarantee new contracts: firms must navigate local regulatory environments, supply-chain competition, currency fluctuations and geopolitical dynamics. Some industry observers caution that success will hinge on NMDC Energy's ability to translate its Gulf-region execution record into Asia-Pacific norms and build relationships with regional stakeholders.

NMDC Energy is also developing its fabrication capacity via a 400,000 sqm yard in Ras Al Khair, Saudi Arabia, capable of producing 40,000 tons annually of modular systems and strategic offshore equipment. This facility bolsters its global infrastructure and supports the company's shift into larger and more technically demanding projects.

The Taiwan contract itself forms a critical element of NMDC Energy's international growth. Awarded in early 2025, it illustrates the company's ability to win high-value EPC packages outside its home region. Given the project's scale and complexity, the Taiwan branch is expected to enable on-the-ground coordination, local content development and smoother project delivery.

On the supply-chain side, the CITIC Steel partnership offers competitive advantage. Steel procurement remains a key cost and risk driver in modular fabrication and large offshore installations. By aligning with a major Chinese producer, NMDC Energy aims to secure a stable and high-grade steel supply source, which may also open doors to collaborative ventures or joint sourcing arrangements across Asia.

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