Abu Dhabi strengthens energy pipe supply chain

Mubadala Investment Company and Tubacex Group have launched operations at their Abu Dhabi joint venture, bringing a specialised manufacturing platform for advanced Oil Country Tubular Goods into service as the UAE accelerates efforts to localise critical energy supply chains.

The venture, operating under the TBX Nexxia brand, is focused on corrosion-resistant alloy tubular products used in demanding oil and gas infrastructure, particularly wells and production systems exposed to high pressure, high temperature and corrosive environments. The launch was announced during Make it in the Emirates 2026, placing the project within the UAE’s wider industrial strategy to move more high-value production closer to domestic and regional demand.

Located in the Industrial City of Abu Dhabi, the facility is described as the first Middle East platform dedicated to advanced CRA OCTG solutions. It links Abu Dhabi operations with Tubacex’s industrial capabilities in Spain and Brazil, giving the venture an integrated chain covering materials design, tubular manufacturing, finishing, threading, technical support and traceability.

The launch activates a partnership first announced in 2024, when Mubadala agreed to invest $200 million for a 49 per cent stake in Tubacex’s OCTG business. That transaction was designed to anchor part of Tubacex’s high-end tubular operations in Abu Dhabi and support long-term supply to energy projects requiring specialised alloy pipes.

TBX Nexxia’s capacity is expected to reach 20,000 tonnes a year of CRA OCTG products. ADNOC is the cornerstone customer, with the platform tied to long-term supply of corrosion-resistant tubulars for gas extraction and production in Abu Dhabi. The plant’s role is therefore closely connected to the emirate’s push to expand gas capacity, strengthen energy security and reduce dependence on distant processing centres for strategic components.

For Mubadala, the venture fits a broader investment approach that combines financial returns with industrial development inside the UAE. The sovereign investor reported assets under management of AED1.4 trillion, or $385 billion, for 2025, with capital deployment rising to AED143 billion. Its domestic portfolio has become a core channel for Abu Dhabi’s diversification agenda, particularly in manufacturing, technology, infrastructure and energy-related industries.

For Tubacex, the Abu Dhabi platform gives the Spanish industrial group a stronger presence in one of the world’s most active energy investment markets. The company’s first-quarter 2026 results showed sales of €154.2 million, down 15.4 per cent year on year, and EBITDA of €20 million, while its order backlog stood at €1.202 billion. The company said Middle East tensions and logistics interruptions had affected its Abu Dhabi plant and working capital, making the operational launch of TBX Nexxia a key step in stabilising regional delivery.

The timing also reflects a shift in Gulf energy procurement. ADNOC has outlined AED200 billion, or $55 billion, in planned project awards for 2026 to 2028, covering upstream and downstream operations. A larger domestic manufacturing base gives contractors and suppliers a stronger route into those projects while helping energy companies shorten lead times and manage disruption across shipping routes and global supply chains.

UAE industrial policy has made localisation a central priority through Operation 300bn, which aims to raise the industrial sector’s contribution to GDP from AED133 billion to AED300 billion by 2031. Make it in the Emirates has become the public-facing platform for that drive, drawing sovereign capital, state energy demand and international manufacturers into projects that can deepen local capability.

TBX Nexxia also carries strategic value beyond conventional oil and gas. CRA tubulars are used where material failure can carry high operational, safety and environmental costs. Their application across gas production, complex wells and lower-carbon energy infrastructure places the venture in a segment where reliability, certification and technical support are as important as production volume.

Dr Alyazia Al Kuwaiti, executive director of UAE Industries within Mubadala’s UAE Investments platform, said the project reflected the country’s long-term commitment to building strategic industries that improve resilience and competitiveness. Tubacex chief executive Josu Imaz said the platform brings the group’s CRA OCTG proposition under one identity, with Abu Dhabi as the regional anchor and Spain and Brazil providing integrated industrial support.