Indian pipe manufacturers such as Jindal Saw, PSL, Welspun Gujarat Stahl Rohren and Man Industries have the potential to capture orders of $14 billion over the next five years, given the furious pace of expansion in the upstream oil and gas sector, a report by the brokerage house SSKI said. | |
| The report highlighted that in export markets, pipe contracts worth $59 billion (65 million tonne) were expected to be floated. |
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| The report highlighted that Indian players have the required accreditations with global giants such as Exxon and Total-Fina who have a well-established relationship with upstream oil companies in West Asia and Africa. |
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| This relationship should help them garner 12 per cent of this market (about $7 billion). |
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| In the domestic market, pipe contracts worth $9 billion are expected to come up for bidding in the next five years, with Indian players expected to retain a market share of 75 per cent ($6.75 billion). |
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| In the domestic market, analysts point out that growth would be driven two-fold "" oil and gas supplies from the Krishna Godavari-basin are expected to come onstream in 15-24 months, which would require setting up infrastructure and the corresponding demand for pipes. |
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| Also, the expansion in the pipeline network for city gas distribution projects would help keep demand for pipes strong. |
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| For instance, GAIL alone is expected to spend an estimated $2.6 billion on pipes over the next five years, as part of its approximately 7,900-km of high pressure transmission lines in 15 states across the country. |
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