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Expanding steel pipes industry

Source:By: Zainab Mansoor Release Date:2011-05-30 886
Metalworking
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? Sebastian Kaulitzki | Dreamstime.com

The booming oil and gas industry in the Gulf and the expanding pipes network is illustrative of a growing and illustrious pipes industry in the next five years. Tekno Tube 2011, the 10th International Trade Fair for Industrial Machinery, Metalworking, Machine Tools, Dies/Molds, Tubes, and Pipes was mirroring the same message.

Satish Khanna, General Manager, Al Fajer Information and Services, organiser of Tekno/Tube Arabia 2011 with Messe Dusseldorf GmbH as the overseas associate partner, said, "The Gulf has the largest concentration of energy resources in the world, with oil producing countries in the region estimated to have spent approximately Dhs182.5 billion ($50 billion) to increase their current oil production or on new explorations by the year-end."

He added, "The global demand for energy, infrastructure development, construction projects, water and air conditioning supply and automobiles - the key sectors that drive the tube and pipe industry -- will continue to grow in the coming years."

Welded pipes market

All the countries except Turkey are net importers of welded tubes in the region. Kingdom of Saudi Arabia, United Arab Emirates and Iran are major importers of welded tubes in the region. The total Middle East welded pipes market is expected to grow at an annual compound growth rate of 7.64 percent (2007-2016).

For the welded pipes market, Saudi Arabia, UAE, Oman, Qatar and Bahrain have an individual annual compound growth rate of 9.42 percent, 7.16 percent, 3.14 percent, 7.81 percent and 9.35 percent, respectively.

"With majority of global oil reserves, there holds a great potential for transportation pipelines for transmission of oil and gas in Middle East as they are much cheaper than other sources of transportation. Therefore consumption of welded pipes in the region is expected to increase considerably in the near future. Oil and gas transmission pipe lines is the major application area for welded tubes in the oil and gas industry and therefore accounts for around 87 percent of the total welded tubes consumption. The welded Oil Country Tubular Goods (OCTG), which includes casings and tubing only account for 13 percent of the total consumption," said Sandeep Dutta, Metals and Mineral Practice, South Asia and Middle East, Frost & Sullivan.

Seamless – OCTG and line pipes

With high demand in the region for seamless tubes due to increasing Exploration (E&P) activities and the recent development in natural gas sector, the production capacity for the region is expected to increase in future. The major applications area for seamless tubes in the region includes E&P and the line pipes for gas transportation. Seamless tubes are used in both OCTG and lines pipes application. For the Middle East region, around 39 percent of the total demand was for OCTG and around 61 percent for the lines pipes application.

The line pipes application includes tubes used in the transportation of natural gas and line pipes used in refineries. OCTG application is used across drill pipes, casings and tubing during E&P activities.

"All the countries in the Middle East region are net importers of seamless tubes, which are basically due to the fact that only two countries have manufacturing plants in the region. The demand is fulfilled by the local distributors who procure tubes from international suppliers or there are international agents of the companies in the region who cater to local demand by procuring products from their manufacturing plants in other locations," said Dutta, Frost & Sullivan.

Some E&P companies procure directly from the international manufacturers, but in some regions direct procurement is not possible for instance iRunning Shoes & Gear

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