Reading: Baker Hughes Marks Major Milestone in Saudi Arabia with Dammam Facility Expansion

Baker Hughes Marks Major Milestone in Saudi Arabia with Dammam Facility Expansion

Amin khan
8 Min Read

Global energy technology giant Baker Hughes has marked a significant milestone in its commitment to localizing energy solutions and strengthening its presence in Saudi Arabia. The company has officially announced the expansion of its Industrial & Energy Technology (IET) Center of Excellence in Dammam, a strategic move that further supports Saudi Arabia’s long-term goals for economic diversification and energy leadership.

The expanded facility is expected to nearly double its workforce, adding around 60 new skilled jobs in engineering, manufacturing, and technology. This move not only enhances local capabilities in key areas like gas compression, energy systems, and advanced manufacturing, but also demonstrates Baker Hughes’ confidence in the Kingdom’s growing role as a global energy hub.

A Strategic Investment in Saudi Arabia’s Future

Baker Hughes has been operating in Saudi Arabia for over 80 years, and this latest investment is part of its ongoing support for Saudi Vision 2030—a national strategy to diversify the economy, promote local industry, and reduce dependency on oil exports. With the energy sector at the heart of this transformation, Baker Hughes’ decision to expand its footprint in Dammam reinforces its alignment with the Kingdom’s ambitions to become a global leader in natural gas and clean hydrogen technologies.

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The Dammam IET Center, which originally opened in 2018, has played a vital role in supplying high-end equipment for major national energy projects. Over the past five years, the center has successfully delivered more than 50 advanced compression trains for gas and hydrogen initiatives across the Kingdom. These systems are critical for enabling the safe and efficient transport and processing of gases, helping Saudi Arabia meet its growing energy demands while also reducing carbon emissions.

With the new expansion, the Dammam facility will boost its capabilities to include full-scale manufacturing and repairs for a wide range of technologies—such as seal gas systems, vibration monitoring systems, control panels, and high-performance gears. The expansion will also introduce more automation and digitalization in operations, improving efficiency and safety standards.

Supporting Saudi Mega Projects Like NEOM and Jafurah

Saudi Arabia is investing heavily in future-facing projects like NEOM, a $500 billion smart city powered entirely by renewable energy, and the Jafurah gas field, the largest unconventional non-oil associated gas field in the Kingdom. These mega projects are critical components of the country’s vision to transform into a diversified and sustainable economy.

Baker Hughes has already been involved in supplying technology for these strategic efforts, particularly by providing localized solutions for hydrogen and gas compression. The Dammam Center has become a crucial hub in delivering equipment on time, within the region, and customized to the specific needs of these projects.

By expanding the facility, Baker Hughes is ensuring that it can continue to meet the growing demand from its clients, including national champions like Aramco, while also advancing technological innovation from within the Kingdom.

Driving Local Talent Development

One of the most important aspects of the expansion is its focus on developing local talent. The newly created jobs will offer Saudi engineers, technicians, and specialists the opportunity to work on cutting-edge energy technology within a global company. Training programs, mentorship, and partnerships with local universities are part of Baker Hughes’ broader strategy to support workforce development in line with Vision 2030.

Alberto Matucci, Vice President of Gas Technology Equipment at Baker Hughes, noted that the company is proud to invest not just in infrastructure, but also in people. “We are proud to be investing in local talent and new skill development while growing our footprint in the Kingdom of Saudi Arabia. Our expanded presence in Dammam reinforces our commitment to deliver reliable and lower-emission energy solutions that support the Kingdom’s transition goals.”

This emphasis on localization has long-term benefits, not only in creating jobs but also in fostering innovation within the country. By nurturing homegrown expertise, Baker Hughes is helping to create a self-sustaining energy ecosystem that can design, build, and maintain advanced equipment without relying on imports or outsourcing.

Strong Partnerships with Saudi Energy Leaders

The expansion of the Dammam facility also comes on the heels of several strategic contracts between Baker Hughes and leading Saudi energy players. The company was recently awarded a major contract to supply gas compression equipment for the third phase of Aramco’s Jafurah gas field development. This phase involves the delivery of six electric motor-driven compression trains, designed to enhance gas processing while reducing environmental impact.

Additionally, Baker Hughes has supported Air Products with high-tech hydrogen compression solutions for the world’s largest green hydrogen plant located within the NEOM project zone. These collaborations highlight Baker Hughes’ technical excellence and its ability to deliver complex solutions at scale within the Kingdom.

Ganesh Ramaswamy, Executive Vice President of Industrial & Energy Technology at Baker Hughes, emphasized that the expanded facility is about more than just infrastructure. “It’s about ensuring we have the local capabilities and knowledge base to serve our customers in Saudi Arabia with agility and innovation. Our work in Jafurah and NEOM demonstrates our commitment to enabling energy security, efficiency, and sustainability.”

A Milestone Event with Government and Industry Support

The groundbreaking ceremony for the expansion was attended by senior officials from the Saudi Ministry of Energy, representatives from Aramco, and executives from local supplier companies. Their presence underscored the importance of the facility not only to Baker Hughes but also to Saudi Arabia’s broader industrial development plans.

The expansion is scheduled to be completed by March 2025. Once fully operational, the upgraded Dammam IET Center will be one of the most advanced energy technology hubs in the region—capable of supporting both domestic and international demand for gas, hydrogen, and industrial systems.

Looking Ahead

Baker Hughes’ expansion in Dammam marks a defining moment in the company’s partnership with Saudi Arabia. By deepening its manufacturing footprint, fostering local talent, and aligning with national priorities, the company is not only strengthening its position in the Middle East but also contributing to a cleaner, more resilient global energy future.

As the Kingdom accelerates its transition towards more sustainable and diversified energy sources, investments like these will play a pivotal role. With the world watching Saudi Arabia’s transformation closely, Baker Hughes is positioning itself at the forefront of innovation, collaboration, and long-term growth.

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