Good Days ahead for Indian Steel Pipe Makers amid Government's push to Expand National Gas Network

According to latest reports, the Indian government plans to double the share of natural gas in India's energy mix by 2030 in order to reduce pollution and emissions and to do the same, it is providing a USD 10 billion push for the required infrastructure.

Recently, the government has completed the country's biggest city gas distribution network auction to link more than 10 million homes to gas grids by 2020. This expansion in the gas economy and infrastructure is going to give a requisite boost to the steel pipeline industry in the country. India which the World Bank said in 2016 was home to 14 of the 30 most polluted cities on the planet, is building gas pipelines and new import facilities to increase use of the fuel.

Jindal Saw Ltd, a key pipes manufacturer in India has said in its annual report in August this year that low penetration of pipes and government measures such as setting up the National Gas Grid and revamping the water and sanitation infrastructure is going to provide a domestic business opportunity of more than 300 billion rupees (USD 4 billion) to Indian players.

The government's project is likely to benefit pipe manufacturers such as Maharashtra Seamless Ltd., Ratnamani Metals & Tubes Ltd., Jindal Saw, and Man Industries India Ltd.

Also, India's domestic steel sector do not face any competition from cheaper imports due to the presence of anti-dumping duty on seamless tubes and pipes imports from China.
In 2017, the Indian government has imposed the anti-dumping duty in the range of USD 961 to USD to USD 1,610 per tonne on seamless steel pipes and tubes from China which had been the largest source of pipes import for India. This duty will be in place for the period of five years.

As per the industry sources, the global economies are shifting from oil to gas, and natural gas distribution companies have revived their investment plans, which include construction of new pipelines as well as replacement of aging pipelines giving a boost to Indian steel pipes demand.