Nigeria’s $440.51mln tubular goods market projected to reach $718.60 million by 2027

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The Nigeria oil country tubular goods market was worth US$ 440.51 million in 2019 and is projected to reach US$ 718.60 million by 2027; it is expected to grow at a CAGR of 6.5% during the forecast period.

According to research analysis by The Business Market Insights  on “Nigeria Oil Country Tubular Goods Market” and forecast to 2027.

The research report provides deep insights into the regional market revenue, parent market trends, macro-economic indicators, and governing factors, along with market attractiveness per market segment. The report provides an overview of the growth rate of the Nigeria Oil Country Tubular Goods market during the forecast period, i.e., 2020–2027.

Oil Country Tubular Goods i.e., OCTG, refers to a range of rolled metal items, more generally related to as pipes, and the various attachments used in the process of manufacture and operation.

These can include tubes for drilling, lining or tubing, thread protectors, stabbing guides, bumper rings, and chocks for the screw. Due to the requirements of each pipe, the piping items classify as OCTG in terms of their appropriate charging conditions and what they can pass, how solid they are, and their composition. OCTG production is directly influenced by the rise in demand for fossil fuels.

The more wells are drilled, the more OCTG is required, in simple terms. Oil price volatility affects demand for OCTG in the short term, as less wells are drilled during downturn in the industry. The main drivers for OCTG demand are underground, horizontal, sour gas, and offshore wells.

The report profiles the key players in the industry, along with a detailed analysis of their individual positions against the regional landscape. The study conducts SWOT analysis to evaluate strengths and weaknesses of the key players in the Nigeria Oil Country Tubular Goods market. The researcher provides an extensive analysis of the Nigeria Oil Country Tubular Goods market size, share, trends, overall earnings, gross revenue, and profit margin to accurately draw a forecast and provide expert insights to investors to keep them updated with the trends in the market.

Major key players covered in this report: DAMAGIX GROUP, EVRAZ plc, Hunting Group, ILJIN STEEL CO., LTD, JFE Steel Corporation, National Oilwell Varco, Inc., OilPro Oil and Gas Limited, Tecon Oil Sevices Ltd, Tenaris, TMK, TPCO Enterprise, Inc., VALLOUREC, Baker Hughes Company

As per CIA World Factbook, Nigeria’s main export partners are the United States, Spain, India, Brazil, France, and the Netherlands. Since 1936, Shell has been operating in Nigeria and currently dominates gas output in the country, as the Niger Delta, which comprises much of the gas wealth of Nigeria, also houses most of Shell’s hydrocarbon reserves. Other natural resources in Nigeria, apart from petroleum, include natural gas, gold, iron ore, coal, calcareous, niobium, lead, zinc, and arable land.

The oil & gas industry accounts for about 10 percent of gross domestic product, and revenue from petroleum exports accounts for about 86 percent of total revenue from exports. Major factors contributing towards the growth of Nigeria oil country tubular goods   market growth includes substantial investment towards development of pipeline infrastructure, and increasing shale production and a subsequent hike in horizontal and unconventional drilling activity.

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The substantial investment towards the development of pipeline infrastructure is one of the major factors driving the Nigeria oil country tubular goods market.

The use of natural gas has been made very appealing by environmental issues in Nigeria. With the increasing demand for electricity, natural gas (Gas-to-Power) consumption is likely to increase in the coming years and drive Nigeria oil country tubular goods market. Further, in the next ten years, the use of natural gas for producing electricity is expected to grow more than 25 percent faster than fuel consumption of other forms in the Nigeria oil country tubular goods market.

However, synergies between gas consumption and electricity production have brought about the most significant boost to domestic and foreign marketing prospects for coal. The overall construction costs of natural gas pipelines range from US$ 800,000 per km to US$ 2 million per km (for projects with full diameters over rugged terrain). The Nigerian power sector can only operate successfully to the degree that they have a stable natural gas supply.

There is also an export gas pipeline in the works, known as the West African Gas Pipeline, but it has faced several setbacks. The pipeline will allow natural gas transportation to Benin, Ghana, Togo, and Cote d’Ivoire. Much of Nigeria’s natural gas is flared off, and it is estimated that the lack of flared gas causes Nigeria to lose $18.2 million every day.

Significant Investments to Build Pipeline Infrastructure Drives the Demand for Nigeria Oil Country Tubular Goods  

The substantial investment towards the development of pipeline infrastructure is one of the major factors driving the Nigeria oil country tubular goods market. The use of natural gas has been made very appealing by environmental issues in Nigeria. With the increasing demand for electricity, natural gas (Gas-to-Power) consumption is likely to increase in the coming years and drive Nigeria oil country tubular goods market. Further, in the next ten years, the use of natural gas for producing electricity is expected to grow more than 25 percent faster than fuel consumption of other forms in the Nigeria oil country tubular goods market. However, synergies between gas consumption and electricity production have brought about the most significant boost to domestic and foreign marketing prospects for coal. The overall construction costs of natural gas pipelines range from US$ 800,000 per km to US$ 2 million per km (for projects with full diameters over rugged terrain). The Nigerian power sector can only operate successfully to the degree that they have a stable natural gas supply. There is also an export gas pipeline in the works, known as the West African Gas Pipeline, but it has faced several setbacks. The pipeline will allow natural gas transportation to Benin, Ghana, Togo, and Cote d’Ivoire. Much of Nigeria’s natural gas is flared off, and it is estimated that the lack of flared gas causes Nigeria to lose $18.2 million every day.

 

Impact of COVID-19 Pandemic on the Nigeria Oil Country Tubular Goods Market

Coronavirus outbreak first began in Wuhan (China) during December 2019 and since then it has spread at a fast pace across the globe. As of March 2020, China, Italy, Iran, Spain, republic of Korea, France, Germany, and The US are some of the worst affected countries in terms confirmed cases and reported deaths.

According to the latest WHO figures, there are ~ 3, 32,930 confirmed cases and ~14,510 total deaths globally. The COVID-19 is anticipated to hamper the market growth of Nigeria oil country tubular goods market to a large extent.

As, the coronavirus outbreak has been affecting economies and industries in Nigeria due to lockdowns, travel bans, and business shutdowns.

Process Insights- Nigeria Oil Country Tubular Goods Market

Nigeria Oil country tubular goods market by process is segmented as seamless and welded. Seamless pipes are more preferred when compared to welded pipes owing to their capability to resist extremely high pressure without cracking. Moreover, seamless pipes provide uniformity of shape and avoid the chance of a weak seam that further makes it suitable for the high-pressure applications such as, hydrocarbon exploration and production. On the other hand, welded pipes are most cost-effective compared to seamless pipes and can be easily customized based on the operational requirements.

Nigeria Oil Country Tubular Goods Market, by Process– 2019 & 2027

Nigeria Oil Country Tubular Goods Market, by Process– 2019 & 2027

 

 

Product Insights- Nigeria Oil Country Tubular Goods Market

Nigeria Oil country tubular goods market by product is segmented as drill pipe, well casing, and production tubing. The drill pipe segment held the largest market share in 2019, while the well casing segment is expected to be the fastest growing segment in the market during the forecast period.

Application Insights- Nigeria Oil Country Tubular Goods Market

Nigeria Oil country tubular goods market by application is segmented as offshore and onshore. Apart from difference in their drilling locations they also vary in profits, timelines for processes & drilling and cost. With new developments in technology there is a rising demand for premium pipes.

To save the overall cost & to reduce the hazards, the oil country tubular goods should be correctly selected during drilling activity. Growth of Market also depends on new advents in drilling technology in terms of improving efficiency to increase oil & gas recoverability.

 

Strategic Insights

Market initiative is a strategy basically adopted by the companies to expand their footprint across the world and meet the growing demand of their customers. The market players present in Nigeria oil country tubular goods market are mainly focusing towards development of advanced and efficient products.

By signing partnership, contracts, joint ventures, funding, and inaugurating new offices across the world permit the company maintain its brand name.