Cylingas Company LLC

COMPANY PROFILE

2014

Cylingas

+971 4 3472648 | www.cylingas.ae

40 years and counting for Cylingas‌ Editorial: Christian Jordan

Cylingas is celebrating 40 years of successful business. But the company, which was founded in April 1974, is not looking backwards for long. It has ambitious growth plans for the future and General Manager, Raed Ali El Sheikh tells Total World Energy more about how the company plans to expand.

In April, Dubai based Cylingas - pioneer in turn-key central LPG installations and gas distribution infrastructure for industrial and commercial clients - celebrated its 40th birthday. The company was established on 28th April 1974 by a decree of the late ruler of Dubai, His Highness Sheikh Rashid Bin Saeed Al Maktoum, and currently is a subsidiary

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of Emirates National Oil Company Ltd (ENOC) LLC. Cylingas is 100% owned by the Government of Dubai and began full operations in 1976 as the first GCC Company based in Dubai to manufacture gas cylinders.

Throughout its 40 years in business, the company has shown that it is more than capable of leading the industry with innovative technologies

and creative solutions that have been satisfying some big name clients whilst also meeting stringent international quality standards.

General Manager, Raed Ali El Sheikh says that in its 40th year the company remains as ambitious as ever for success and is now looking to expand into neighbouring countries to bolster its already impressive project

Cylingas Company LLC portfolio.

“There are many plans in place from JVs and partnerships, to opening up Cylingas branch offices within Emirates of UAE; such as Abu Dhabi, Sharjah and neighbouring countries like Saudi, Oman, Qatar and Kuwait.

“For UAE, our focus is more on EPC business, whereas for the coming two years our outreach to neighbouring countries would be covering PREFAB SCOPE and supply only. In 2016 we plan to move into neighbouring countries as an EPC contractor and also covering Oil & Gas construction related activities.

“The first step, and what we are looking at for this year and next year, is to appoint representatives on our behalf in these countries to help us pre-qualify with O&G storage and field clients.”

As for cost; this is not an issue says Raed. The bigger concern is making sure any expansion is in the best interest of the company. When the

proposed expansion begins, Cylingas will be ready to train up local people and bring new skills to the areas it moves into.

“It’s not a matter of cost, it’s a matter of geographical expansion being planned so that growth is organic. We don’t want to go there unless we are fully equipped, fully geared and the business justifies that direction.

“We are happy to train local people and Cylingas has been planning that for when we do expand. We always ensure we comply with all local regulations and we are more than equipped to deal with this when we have to,” Raed says.

Like any business, expansion is one of the fundamental goals for the company but it’s not just geographical expansion that makes up the strategy of Cylingas. The company is also looking to add to its expertise, its product portfolio and its service offering.

“In late 2000, Cylingas embarked on a series of developments that have dramatically expanded our capabilities and services. With our most recent expansion, we have created an EPC division focusing on the regional oil and gas industry. Cylingas’ position as a leading provider of EPC services to the industrial and energy sectors, with a focus on storage projects, complements CGL standing as a builder of storage infrastructure projects for the hydrocarbon sector,” Raed explains.

Cylingas is perfectly positioned to become the oil and gas sector EPC contractor of choice and this is continually being reinforced by the recognition that the company receives from the International Organization for Standardization (ISO).

“We have added to our scope of ISO certification with the inclusion of project management and this is taking us towards excellence in project management. In turn, this

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improves our customer care attitude and thus improves our market share and revenue. We are working for customers so they have to be satisfied and happy.

“We had ISO certification for many years before I joined but the recent addition has been with project management. We now have a full complement of ISO certifications including fabrication, project management, design, manufacturing, supply and maintenance.

“We hold “U” and “U2” Stamp from the American Society of Mechanical Engineers (ASME) as well as the “R” Stamp from the National Board of Boilers and Pressure Vessels Inspectors (NBBI).

“EPC is where we take the full integrated project on behalf of the client. We do the design from A to Z, we buy the necessary materials and we execute everything. It’s not like a small fabrication shop where you deliver a certain product and your responsibility ends with that product takes off the yard. We go to the site of the client and remain there for years constructing the plants according to

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the client’s specifications.

“We can do maintenance for anything we build. We can also maintain commodities built by others, for example, we do API 653 tank inspections on projects that have been installed by others,” says Raed.

SETTING THE STANDARD The capabilities that Cylingas has developed since its establishment make it a company which sets the bar in not only the oil and gas industry, but the energy industry as a whole in the GCC region.

“There has been a serious drive towards improvement in all areas of operation,” explains Raed. “I took over a company with 40 years heritage and which has a very good record for quality as well as safety. I took that and built on it with a focus on project management excellence, customer care, better delivery, improved efficiency in operations and we are now looking at taking the company towards a benchmark in the industry.”

It is this sort of commitment to quality that is allowing the company to move away from the chasing pack

and into a new league; a league where the customer comes first and where quality and safety is the focus.

“We believe in quality and safe deliverables. Our EHS statistics over past five years have seen a significant change. Being a part of diversified group, ENOC, we comply with highest safety standards, adherence to the quality management system and project management manuals. We have fully fledged engineering and design teams for each discipline.

“As we speak; projects has seen a surge, hence competition has increased not only from local market but from international markets as well.

Local contractors with engineering offices in other countries make bidding very competitive, however coordination issues thus probability of error increases, which could be a catastrophe to any project, followed

by LDs, production delays and even legal charges,” says Raed.

Cylingas makes use of a substantial workforce, which increases with the use of subcontractors during large projects, and through its employees the company manages to cover all

Cylingas Company LLC

sectors of its chosen industry, a claim which most competitors cannot boast.

“Cylingas also is a pioneer in turn-key central LPG installations, gas distribution infrastructure, for industrial and commercial clients such as hotels, and residential complexes.

The company has recently and quickly become known for its excellent design engineering and field construction of elevated water storage tanks, aboveground tanks for storage of petroleum and refined products, refinery process vessels and other steel plate structures.

“We deliver a wide range of products and services including oil and gas storage tanks, API 650 and 620 vertical storage tanks, pressure vessels, process equipment, skid packages, flare stacks, silos, pipeline spools and allied products as well as marine loading arms, industrial civil and structural works, under/above ground pipelines,” explains the GM. The company also boasts a 300,000sqft modern manufacturing and fabrication unit in Dubai with the capability of rolling plates with

thickness up to 70mm. This facility is complemented by state-of-the-art infrastructure and a skilled work force.

“Cylingas can provide its clients with several solutions package across the entire job spectrum, from proprietary technology and related catalysts to design and full EPC including construction management services, commissioning and aftermarket support,” adds Raed.

RAED ALI EL SHEIKH As Cylingas continues on its expansion path, Raed Ali El Sheikh is the perfect man to lead the company through the inevitable challenges that lay ahead. With experience in all areas of the business and a long career with proven results, the GM is enjoying seeing plans turn into results.

“It’s enjoyable as you see the team turning designs into reality, generating success and executing plans whilst always improving the company and that is something we all want to see at Cylingas,” he says.

“I have more than 20 years in the industry; I started my career

working on big EPC contracts with construction companies, the biggest being Consolidated Contractors Company (CCC), we were building tanks, complete refineries and other oil and gas plant. My first project was with ADNOC (Abu Dhabi National Oil Company) in 1995 and then I moved to Saudi Arabia in 2000 and from there, I was working in a fabrication shop delivering pressure vessels also for oil and gas so I have site experience and well as fabrication experience. I joined Cylingas in 2012 as General Manager.”

Even during Raed’s relatively short time with Cylingas, the company has been involved with some significant projects that have contributed to the growth and development of the industry.

“Our list of successful projects is very long. One of the biggest projects that we have been involved with is the ENOC Lube Oil Manufacturing Plant at the Port of Fujairah. For this project, we built the whole plant in phases.

The project included the full scope of civil, electrical, mechanical, piping,

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tanks and pressure vessels. For the vessels, we fabricate in the shop and take to the site and erect them and make connection piping.

The first two phases have been completed and the third phase started in December 2013 with the targeted completion of June 2015. The facility is online, the client is operating it and I think they are happy so far.

“In other projects like Dubai Airport, we have installed fuel storage tanks and we have also installed the necessary piping around the tanks so we offered the integrated solution for tanks and piping.

“Whenever the client has any concerns, they talk to our project managers and the feedback comes through to top management. We would then jump to meet the expectations of the client,” says Raed.

As for future projects, the next 10 years looks set to exceed the success of the company’s fist. Cylingas will continue to focus on storage tanks and Raed says that this part of the business will contribute to the company’s growth.

“EPC is one of the biggest revenue streams we have and we think, value wise, will take us to higher levels.

“The company has recently and quickly become known for its excellent design engineering and field construction of elevated water storage tanks, aboveground tanks for storage of petroleum and refined products, refinery process vessels and other steel plate structures”

“The materials are expensive but what we try to do is use our extensive engineering capabilities to minimise the cost for the client. Also, when a client gives us a contract, we will look to order materials as quickly as possible to combat price escalation as well maintaining float in project delivery.”

With the Middle East promising further growth in the next three years and spending on infrastructure, especially in places like Abu Dhabi, continuing to rise, it looks as though the opportunities for Cylingas will only increase and its unofficial tag of industry leader looks certain to become more concrete.

So what has been the key to the company’s success over the past 40 years? Raed puts it down to strong relationships and a focus on quality service.

“Our business associations with renowned international brands, strict adherence to EHS requirements and a customer base covering government, semi-government and renowned private companies bears testament to Cylingas’ commitment to providing quality valueadded service to its customers for over three decades” he concludes

A selection of projects ongoing or completed: • ENOC Lube Oil Manufacturing Plant – Port of Fujairah • Dubai Airport – Jet Fuel Storage Tanks • EFDTT – ENOC Fujairah Distribution & Trading Terminal • Horizon – Falcon Phase 1 – Jet fuel storage connecting Dubai Airport • ADCO – Buhasa Project – Abu Dhabi • Qatar Fertilizer Company, Qatar Petroleum Company • South Oil Company – Iraq • Ecomar/Pyramid Engineering – Petroleum Re-development facility Fujairah

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