GCC to Lay 21,000-Kilometer Pipeline Bonanza Through 2018

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The Gulf region is set to add more than 21,000 kilometers of pipelines to its current pipe network over the next five years.

The Gulf Cooperation Council (GCC) tubes and pipes industry will invest $18 billion in pipeline projects over the period, which will constitute 14% of the globally extended pipeline network of 161,000 kilometers.

"The GCC's drive to extend its railway network will boost the demand for tubes, pipes and welding solutions. The demand is being met with increased domestic production by local players. Moreover, the remarkable utility and construction projects are giving a shot in the arm to the pipes, tubes and welding industries," said Satish Khanna, general manager of the organizers of this week's Arabia Essen Welding & Cutting, Tekno Arabia and Tube Arabia show in Dubai.

The GCC and Middle East are providing increasingly attractive markets for international tube manufacturers. Some of the growing sectors include: oil and gas technology, petrochemicals, water and electricity supply, drainage and construction, said Khanna.

The largest GCC country, Saudi Arabia, feature infrastructure projects in its 2013 budget of $219 billion, which will also cover social and welfare projects as the country seeks to avoid social unrest contagion from the Arab Spring.

The 2013 budget is 19% higher than the 2012 budget, but is below the $227 billion that the government actually spent. If oil stays above $100 a barrel, the envisaged budget surplus of $2.4 billion will be much higher, repeating the pattern of recent years. For related information, see January 3, 2013, article -- GCC Project Could Drive Imported Rail Market Up to 1 Million Tons by 2020.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.