The development of local pipe mill industry is one of the seven cardinal targets of the Board, primarily because steel line pipes are some of the critical inputs in the oil and gas industry. It has a high potential for employment generation, local value addition, retention of industry spend and linkage opportunities to other sectors of the economy.
The projected annual industry demand of line pipe is put at over 800,000 tons, arising from the demands of the gas master plan, replacement of age pipes and new fields development projects against the current supply opportunity of 100,000 MT (HSAW) per annum.
Currently, SCC Abuja has expanded its capacity to produce HASW Steel pipes of 270,000 MT per annum.
Yulong Steel Pipes has added 250,000 MT per annum HSAW steel pipes and is targeting industry need in Nigerian and other West African countries. The company plans 2nd and 3rd development phases that will be dedicated to longitudinal submerged Arc Welding (LSAW) pipes and ER Welding pipes respectively.
A case for Intervention:
HSAW make up only 10% of industry demand for steel pipes. 90% of steel pipe will continue to be imported if no intervention is made by the Board. The NC Act provides that 100% of steel are to be sourced from local mills.
NCDMB is also directly promoting the establishment of the pipe mill in Nigeria. The initiative involves the pilot scheme were the Board is involved in project development activities (Land Acquisition and Market Intelligence). In this regard, the land has already been prepared at polaku in Bayelsa State to support the establishment of 250 metric tonne/annum seamless pipe mill.
Attributes of the land for the pipe mill include:
Nearness to shell gas plant facility for accessibility to gas, proximity to the Gbaran Ubie National Integrated Power Plant (NIPP) and closeness to River- Nun for easy transportation of raw materials and finished goods.
Key milestones for Polaku pipe mill project:
Acquired 10 Hectares line for polaku near Yenagoa and land development involving
- Dredging and sand filling
- Geotechnical studies
- Commerce Stabilization of Dedicated Access road
- Completed Front End Engineering Designed of jetty-CDI by SPBC
- Conclude Public hearing/ panel review for Environmental Impact Access (EIA)
- Concluded Site Clearing and excavation for the dedicated access road
- Partnership Agreement with Titan Steel pipe (Investor)
- NCDMB to review its involvement on the project and plays the role of a lead investor with equity of 80% from NCDF
- Titan Steel to invest 10% equity at the beginning with the option of buying of NCDMB equity over time. The Board is also encouraging third-party investment. Below are the capacity and status of work by investors:
|S/N||Investor Name||Type of Pipe/ Capacity||Status|
|1.||Technova pipe mill, Ologbo, Edo State.||LSAW/200,000 MT/Annum||Physical construction Ongoing|
|2.||SCC Pipe Mill, Abuja||HSAW/270,000MT/Annum||Yard Expansion Completed|
|3.||Rheingold Nig. Ltd; Port Harcourt||200,000MT/Annum||Project Design Complete|
|4.||Integrated Supply Chain Pipe Mill, Onne, Port-Harcourt.||Seamless/100,000MT/Annum||EIA Ongoing|
|5.||Brent Nigeria Limited, Calabar||LSAW/300,000MT/Annum|
Upon completion of mills, Nigeria will be able to meet the demand of close to 1million MTPA of line pipe and also serve as a supply hub for West Africa and its environs.
PIPE COATING FACILITIES IN COUNTRY
The Board’s support to investors has enabled the development of the pipe coating plants that meet the specification of the oil and gas industry.
NCDMB has a responsibility to protect the investment and has mandated Operating companies to prioritize the utilization of existing facilities in the procurement of pipe coating service.
Pipe coating plants in Nigeria include:
|S/N||Name of Company||Capacity|
|1.||PAI International Engineering Nigerian limited Port Harcourt||· Has a 3 layer P E coating plant (FBE Coating Plant) that can handle from 2inch to 48inch pipe.
· Has a concrete coating plant that can handle from 4inch to 60inch.
|2.||AFRICOAT Service Ltd, LADOL Lagos||· Coating capacity of the plant will range from 4inches diameter to 48inches. Ranging from a coating of 100 standard lengths of pipes of 24inches.|
|3.||SOLEWANT Nigeria Ltd PH||· Three (3) Layer Polyethene Pipe coating
· 100% solid, modified polyurethane pipe and metal coating
· Polypropylene Pipe Coating Service
· Cathodic Protection
· Capacity to paint 3inch to 56inch line pipe coating service
· Ability to paint 3 to 7 layers of PP pipe Coating.
|4.||PIPECOATERS Nigeria Ltd FOT Onne||· 3LLP COATING
· 5LLP COATING
|5.||SCC Nigeria Limited, Bwari Abuja||EXTERNAL COATING TYPES: 3PE, 3LPP, Single and Dual Layer FBE, Bitumen and GFE.
Internal coating types: FCE, SFE.
|6.||Yulong Steel Pipe Mill, Lekki||Size from 2” to 102”
2 PE, 2PP
Epoxy fusion coating.