Pipeline expansions to boost GCC industry six fold
Oil and gas industry to drive demand
A number of pipeline projects to facilitate the growth of the regional oil and gas industries will boost demand for steel piping by as much as six fold, over the next five years.
The prediction was made by the organisers of TeknoTube Arabia 2011 and confirmed by a number of exhibitors at the event, held in Q1 2011.
In addition to the oil and gas sectors, demand is also being driven by petrochemicals, water and electricity supply, drainage and construction.
The show’s organisers advised those in the industry to “enhance logistic operations, human resources development and boost the competitive abilities of their products in the international markets”, as regional OCTG pipe consumption for 2011 is projected to reach 1.2 million tons.
Among the key suppliers already established to meet the demand, is the Saudi Arabia-based JESCO, which plans to product 200,000 tons of seamless piping in 2011, with a total rolling and finishing capacity of 400,000 tons.
Oman’s Al Jazeera Steel Products recently increased production capacity to 300,000 tons per year and Zamil Industries and Al Mansoori, also from Saudi Arabia, have 170,000 tons of finishing capacity. However, imports from China, India and Europe will still account for more than 30 per cent of tube and pipe consumption in the GCC region in 2011.
The show’s visitor numbers also confirmed the trend with TeknoTube Arabia 2011, alongside Arabplast, attracting 8,680 people.
