Page 15 - ITAtube Journal 2 2025

tubular products. Another driving factor is
record-high global LNG production: Qatar,
the USA and Australia have record-high
LNG production. Consequently, demand
for OCTG products remains high. LNG
supplies ease the energy supply, especially
in Europe, compensating for the halted
Russian pipeline gas supplies — unfortu-
nately at a much higher cost.
Another interesting driver for the tube
industry is related to the longevity of the
tubular products applied in the oil and gas
industry. Corrosion and wear are two of
the biggest threads to rig performance.
Harsh environment and high concen-
trations of H2S and CO2 as well as chal-
lenging geological conditions demand for
advanced materials. In the past mostly
corrosion inhibitors were the main solu-
tion hereto. Now increasing demand for
pipes made of CRA (Corrosion Resistant
Alloys) and clad materials are taking centre
stage. These high-tech products are a
great opportunity for pipe producers to
create unique selling points.
Despite the current delays, the demand
for new pipeline projects remains high
(see Figure 15). Geopolitical changes and
economic demands require substantial
investment in oil and gas distribution
networks.
Carbon capture, utilisation and storage
(CCUS) is an interesting and upcoming
market. CCUS is an important emission
reduction technology that can be applied
across the energy system. The process
involves separating CO₂ from other gases
produced in large-scale industrial pro-
cesses, such as those in coal- or natural
gas-fired power plants, steel mills, cement
plants, and refineries. The captured CO₂
is then compressed and transported via
pipelines. It is then injected into deep
underground rock formations, usually at
depths of 1,000 metres or more. Due to
the reactivity of CO₂, higher-alloyed tube
materials are required to prevent exces-
sive corrosion.
CCUS will require new pipelines to enable
this technology to be scaled up. These
pipelines can be expanded and intercon-
nected to create CO₂ networks that link
ITAtube Journal August 2025
Market information
Figure 15: The Global Demand for Line pipe Market 2019-2027 (million tons)
Source: Rystad Energy
multiple emission sources to centralised
storage locations. This network approach
reduces costs by sharing infrastructure
across industries, making CCUS a more
viable and attractive option for wide-
spread adoption. By leveraging existing
pipeline technologies, and by developing
new infrastructure for CO₂ transport,
we can accelerate the deployment of
CCUS projects and contribute to global
emissions reduction goals. Despite the
benefits, there are challenges. Significant
hurdles to building new CO₂ pipelines
include high upfront costs, public accept-
ance and regulatory approval. As more
CCUS projects come online, it will be
crucial to ensure that pipelines can meet
the growing demand for CO₂ transport,
which will require strategic planning and
investment in infrastructure. The accept-
ance of such technologies is growing not
only in the US and the Middle East, but
also elsewhere in the world.
The automotive market accounts for
around 15% of the global tube and pipe
market, while the mechanical engineer-
ing market accounts for around 9%. Both
offer interesting opportunities. According
to S&P, the production of light vehicles is
expected to decrease slightly by around
0.4%, from 89.1 million units in 2024 to
approximately 88.7 million units in 2025.
North America and Europe are expected
to face production cuts of 2.4% and 2.6%
respectively, whereas South America and
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