The Rs 15,000-crore steel pipes industry is set to grow 20-25 per cent in the next 3-4 years following massive investment laid out on energy security by the governments of developing economies. Developed economies require a change in existing pipelines that were installed over 25 years ago and demand is likely to emerge from various sectors of global economies.
With a lower base of Rs 1,000 crore in 2001-02, the industry has witnessed sustained growth of 35-40 per cent over the last seven years. During October-December quarter, although fresh orders halted for some time, the execution of existing orders continued. But orders resumed in the following quarters, nullifying the effect of the economic downturn, said J C Mansukhani, vice chairman and managing director of Man Industries (India), one of the largest steel pipes manufacturers in India.
Since natural gas reserves require huge amount of fresh investment, global leaders are united to transport gas through pipelines from the producing centres to the consuming locations. India-Myanmar and Iran-India gas pipeline are the two major projects in this direction. Although, the decision in India-Myanmar gas project is delayed due to political compulsions, Iran has signed similar deal with Pakistan. The project of 1,500 km Iran-Pakistan gas pipeline could later be expanded to India in future.
But, India-Myanmar gas pipeline is likely to become reality soon. Similarly, the exploration of natural gas at K G basin needs transportation through each and every household which requires steel pipes.
Increasing population, economic growth and improving living standards around the world will generate much greater demand for all forms of energy including oil and gas. Fossil fuels like liquid fuels and other petroleum, natural gas and coal are expected to continue to supply much of the energy used worldwide. Oil demand is expected to increase by 1.2 per cent per annum, underpinned by transportation demand. Gas will be the fastest-growing fuel source, reflecting its advantage as an efficient, clean-burning energy for power generation.