Here’s an excerpt from the Surya Roshni 2018 AR which needs a post for itself.
Steel tubes and pipes
India is amongst the fastest growing steel tubes and pipe manufacturers globally with production estimated at about 10 million tons a year. Over the years, India has emerged as the global pipe manufacturing hub owing to its best quality offerings at lower cost and geographical advantages. The global accreditations and certifications owned by the Indian companies have further made them preferred suppliers for many leading oil and gas companies in the world and particularly those in the Middle East, North America and Europe. The steel pipes demand has been increasing on a steady basis owing to requirements from the sectors like water transportation, agriculture, boring, fire-fighting and most importantly infrastructure for oil and gas. It is interesting to note that India is currently under-invested in the pipeline infrastructure with only 1/3rd of the petroleum products moving through the pipeline which is the most efficient mode of transport for fluids. The Government has ambitious plans to improve network of oil and gas pipelines across the nation. Recently, tenders for construction of over 12,000 kms of pipelines have been floated by several oil and gas companies for the mammoth expansion plans over the next five years. Besides, rapid industrialisation in the country and real estate demand from affordable housing and ‘Housing for All’ schemes will lead to increasing investments in building and construction activities. This will necessitate strong requirements of steel tubes and pipes.River water transportation system is another key area of growth. Several areas in India either suffer from drought or excessive flooding owing to uneven distribution of river water. Around 5 lakh tonnes of large diameter pipes were required for connecting rivers for water transportation in the State of Gujarat alone. The same model is anticipated to be deployed across other states in India, which will necessitate the demand for large diameter pipes. And lastly, but most importantly, is the demand from the rural segment. With the Government’s rural-centric policies in the recent budget, lots of activities in the areas of irrigation and construction will be driving the demand for steel tubes and pipes going ahead.
Gas transmission
India at present, has a network of about 13,000 km of natural gas transmission pipelines with a design capacity of around 337 MMSCMD. The natural gas demand has increased significantly owing to its higher availability, development of transmission and distribution infrastructure, the savings from the usage of natural gas in place of alternate fuels, the environment friendly characteristics of natural gas as a fuel and the overall favourable economics of supplying gas at reasonable prices to end consumers. India has six major regional natural gas markets namely Northern, Western, Central, Southern, Eastern and North-Eastern market, out of which the Western and Northern markets currently have the highest consumption due to better pipeline connectivity. However, with the increasing coverage and reach of natural gas infrastructure in India, this regional imbalance is expected to get corrected. Gong ahead, the pipeline network is expected to expand to around 32,000 Kms with a total design capacity of around 815 MMSCMD by 2030, putting in place most of the National Gas Grid that would connect all major demand and supply centre in India.
Planned additions to the pipeline infrastructure
Existing till 2012 - 12144 kms
Expected addition in the 12th plan - 15928 kms
Expected addition in the 13th plan - 3360 kms
Capacity addition MBBVPL/MBPL/Surat Paradip/pipelines beyond 13th plan and till 2030 - 1295 kms
4. City gas distribution
In India, the Petroleum and Natural Gas Regulatory Board (PNGRB) is the regulatory body for City Gas Distribution (CGD), responsible for authorising new areas to set up infrastructure amongst interested players. India’s CGD sector has seen rapid growth in recent years and consumes approx.13.6 MMSCMD of natural gas. There are 15.22 lakh domestic connections, 10,631commercial customers and 2,974 industrial customers at present in India.The Government’s intent to establish a gas-based economy is a good strategic move and hence the CGD segment appears to be positive for its future prospects. To align with the goal of reducing the carbon footprints the Government has set a target of connecting 1 Crore households with PNG by 2019, the introduction of stringent emission levels for vehicles and the proposal to develop green corridors. Surya Roshni is evenly poised to respond to the industrial opportunities stated above through its best-in-class quality offerings in its steel pipes and strips segment. The Company is geared up to achieve its business goals through adoption of latest technology, achieving operational efficiencies, providing excellent customer services and launching innovative and diversified products and retain its prominent position in the Indian steel pipes Industry.
(Pg 30-31)
This report is also worth reading. It will give you information about the possible growth in the steel pipes industry.
‘Vision 2030’, Natural Gas Infrastructure in India, Report by Industry Group For Petroleum & Natural Gas Regulatory Board: