Middle-East Oil And Gas Line Pipe Market Analysis by Mordor Intelligence
The Middle-East Oil And Gas Line Pipe Market size is estimated at USD 6.30 billion in 2025, and is expected to reach USD 7.47 billion by 2030, at a CAGR of 3.46% during the forecast period (2025-2030).
Robust upstream gas programs, cross-border trunk lines, and hydrogen-ready pilots are the principal growth engines, while localization mandates tilt procurement in favor of domestic mills. Rising demand for large-diameter spiral-welded pipes, widening use of duplex alloys in sour-gas and hydrogen service, and supportive sovereign spending buffers are strengthening the competitive positions of regional manufacturers. At the same time, cost pressures from the EU Carbon Border Adjustment Mechanism (CBAM) and episodic oil-price shocks temper near-term expansion for exporters. Project deferrals in Iran and selective funding delays in Iraq demonstrate how geopolitical risk continues to impact spending trajectories.
Key Report Takeaways
- By technology, welded pipe accounted for 62.9% of the Middle-East oil and gas line pipe market share in 2024; seamless pipe is projected to grow at a 6.2% CAGR through 2030.
- By application, transmission lines commanded 57.2% of the Middle East oil and gas line pipe market size in 2024, while gathering systems recorded the fastest expansion at a 4.5% CAGR to 2030.
- By material, carbon-steel grades captured 65.1% of the revenue in 2024, whereas duplex and super-duplex alloys are expected to advance at a 6.2% CAGR through 2030.
- By diameter, ≥24-inch pipes held a 50.5% share in 2024, and this large-bore category is forecast to expand at a 4.2% CAGR over the period.
- By geography, Saudi Arabia led with 39.5% revenue share in 2024, while Iraq posted the highest projected CAGR at 5.5% through 2030.
Middle-East Oil And Gas Line Pipe Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising upstream investment in Arabian Gulf offshore gas fields | +0.8% | UAE, Qatar, Saudi Arabia offshore zones | Medium term (2-4 years) |
| Expansion of cross-border crude export trunk lines | +0.6% | Iraq-Jordan, Saudi-UAE, Qatar-Kuwait corridors | Long term (≥ 4 years) |
| Aging pipeline network replacement demand | +0.5% | Saudi Arabia, UAE legacy infrastructure | Short term (≤ 2 years) |
| Hydrogen-ready line-pipe pilots by ADNOC & Aramco | +0.4% | UAE (ADNOC hubs), Saudi Arabia (NEOM, Eastern Province) | Long term (≥ 4 years) |
| Localization mandates under IKTVA & ICV programs | +0.3% | Saudi Arabia (IKTVA), UAE (ICV), with spillover to regional suppliers | Medium term (2-4 years) |
| GTL & blue-ammonia projects needing low-temperature alloys | +0.2% | Qatar (GTL expansion), Saudi Arabia & UAE (blue ammonia hubs) | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Rising Upstream Investment in Arabian Gulf Offshore Gas Fields
ADNOC’s USD 17 billion Hail & Ghasha program requires CRA-lined lines that can carry 1.5 billion cubic feet per day of ultra-sour gas, inserting premium corrosion-resistant requirements into every bid.[1]“Hail & Ghasha Development,” ADNOC, adnoc.ae Qatar’s North Field West, budgeted at about USD 17-18 billion, adds substantial subsea pipe demand as EPCI contractors integrate 24-in-plus spools with elevated pressure ratings. Saudi Arabia’s offshore Red Sea appraisals, linked to meeting a 60% gas production growth target by 2030, favor flexible flowlines in shallow waters—a niche opportunity for composite alternatives. Deeper water profiles across the Gulf now mandate diameters of≥ 24 inches, shifting volumes toward welded SAW supply. Certification requirements are tightening, with ISO 14001 compliance compulsory for offshore contractors operating in the UAE and Saudi blocks, effectively lifting qualification thresholds.
Expansion of Cross-Border Crude Export Trunk Lines
The 1,200 km, USD 5 billion Basra-Aqaba pipeline, which won Iraqi cabinet clearance in March 2024, targets a 2.25 million bpd export capacity. However, banking sanctions complicate financing, lengthening the execution window. Saudi and Kuwaiti partners are designing shared pipelines for the Dorra gas field, underscoring how maritime unitization is enlarging pipe packages. Hydrogen corridors outlined in the India-Middle East-Europe Economic Corridor (IMEC) enhance material specifications toward hydrogen-compatible steels that exceed API 5L X70 by incorporating fracture-toughness metrics.[2]Ministry of External Affairs, “IMEC Framework,” mea.gov.in Longer, politically sensitive routes are also specifying thicker walls and expanded cathodic protection, magnifying tonnage and value.
Aging Pipeline Network Replacement Demand
Saudi Aramco’s Master Gas System Phase 3, priced at USD 8.8 billion, covers 4,000 km of new lines to substitute 1970s-era networks and standardizes on API 5L X70/X80 spiral-welded pipe. UAE’s onshore Abu Dhabi grids, originally installed in the 1960s-1970s, are on similar replacement cycles. Arabian Pipes Company secured multiple Aramco lots worth SAR 400 million (USD 107 million) in 2024, showing how IKTVA favors local mills. Replacement waves bunch demand into condensed award windows, stressing mill capacity and increasing spot-price volatility for hot-rolled coil feedstock.
Hydrogen-Ready Line-Pipe Pilots by ADNOC & Aramco
ADNOC’s collaboration with ExxonMobil at Ruwais requires pipes that can withstand hydrogen partial pressures above 70 bar, which is driving procurement toward duplex stainless grades that reduce material outlay by 30-40% compared to carbon steel. NEOM’s green-hydrogen backbone in Saudi Arabia sets similar thresholds, catalyzing R&D on coatings to mitigate embrittlement. Aramco’s e-fuel demonstration with ENOWA is stress-testing duplex lines under cyclic load conditions, paving the way for regulatory alignment as NIDLP drafts standards in line with EN 16726 hydrogen transport norms.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Oil-price volatility postponing EPC awards | -0.4% | Global, with acute impact on Iraq, Iran project financing | Short term (≤ 2 years) |
| Shift toward composite flexible pipe in shallow offshore | -0.2% | UAE, Qatar shallow water fields, Saudi Red Sea projects | Medium term (2-4 years) |
| Sanctions-driven funding limits in Iran & Iraq | -0.3% | Iran (comprehensive sanctions), Iraq (selective project delays) | Medium term (2-4 years) |
| EU CBAM raising cost for GCC steel pipe exports | -0.1% | GCC steel exporters targeting European downstream projects | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Oil-Price Volatility Postponing EPC Awards
Historical data indicate a 12-month lag between crude-price dips and Middle East EPC awards, with the 2014-2015 episode resulting in a 60% reduction in contracts over 18 months. Current hedging clauses in pipeline EPCTs include cost-escalation bandwidths of 15-20% once Brent oil prices fall below USD 50 per barrel for 90 consecutive days. In Iraq, several pipeline projects linked to the Ministry of Oil have been included in the 2026 budget cycle amid revenue shortfalls. Saudi and UAE sovereign funds are partially counter-cyclical; however, smaller GCC states lack similar buffers, thereby amplifying project timing risk.
EU CBAM Raising Cost for GCC Steel Pipe Exports
From 2026, GCC pipe exporters will face carbon charges of 25-50% on shipments under CN 7304/7306, which will raise landed prices and trim margins for UAE and Saudi mills that have historically been active in European downstream projects.[3]European Commission, “Carbon Border Adjustment Mechanism,” ec.europa.eu Administrative obligations may amount to EUR 50,000-100,000 per mid-sized exporter annually for carbon accounting. Emirates Steel Arkan’s USD 1 billion low-carbon upgrade program exemplifies how mills pivot toward domestic demand, where IKTVA and ICV offsets neutralize the disadvantages of CBAM.
Segment Analysis
By Type: Welded Technology Consolidates Cost Leadership
Welded pipe claimed a 62.9% share of the Middle East oil and gas line pipe market in 2024, underpinning long-distance crude and gas projects that favor SAW cost economics. G5PS secured a SAR 186 million (USD 50 million) Aramco spiral-welded order, reinforcing SAW acceptance in critical transmission. Seamless supply remains indispensable for high-pressure hydrogen pilots where material integrity trumps cost, but its share is inching down within bulk transmission. Localization makes welded plants more competitive because shipping savings and local-content credits outweigh the benefits of seamless imports. The Middle East oil and gas line pipe market size attributable to welded categories is projected to post a 3.6% CAGR through 2030 as trunk-line kilometers expand.
The growing adoption of automated ultrasonic inspection and robotic welding is enhancing quality levels, reducing field rejects, and lowering lifecycle cost profiles. Tenaris Saudi Steel Pipes doubled LSAW capacity in Jubail in July 2024 to address upcoming master-gas packages.[4]Tenaris, “Jubail LSAW Expansion,” tenaris.com Mills that integrate coating and threading lines in-house are capturing additional value and better meeting accelerated delivery timetables.
Note: Segment shares of all individual segments available upon report purchase
By Material: Carbon Steel Retains Core Volume, Duplex Grades Accelerate
Carbon steel captured a 65.1% share in 2024 thanks to its cost-performance fit in conventional oil and gas flows. However, the duplex and super-duplex segment is growing at a 6.2% CAGR because hydrogen, blue ammonia, and ultra-sour gas service require superior corrosion and embrittlement resistance. SABIC’s FEED for a 1.2 million tpa blue ammonia project calls for cryogenic-capable duplex lines, moving procurement beyond carbon grades. Alloy selections are also migrating toward API 5L X80 for high-pressure gas in Saudi Arabia’s Master Gas System, cementing a trend toward higher strength.
Investment by Emirates Steel Arkan into super-duplex melt routes indicates regional mills are chasing specialty margins. The Middle East oil and gas line pipe market share for specialty alloys remains modest, but its contribution to profits is outsized, shielding mills from commodity price swings.
By Diameter: Large-Bore Pipes Dominate Expansion Economics
Pipes ≥24 inches represented 50.5% of 2024 revenue and are expected to grow at a 4.2% CAGR through 2030, as operators seek lower pumping costs for routes exceeding 1,000 km. The Basra-Aqaba crude line specifies a 48-inch diameter for a 2.25 million bpd capacity, instantly translating into high-tonnage demand. QatarEnergy’s North Field subsea trunk lines between platform and shore average 36-42 inch OD, adding heavy-wall needs for 3,000 m water depths. Spiral-welded economics become compelling beyond 30-inch OD, and the Middle East oil and gas line pipe market size for large bore is expanding as cross-border interconnects proliferate.
Gathering and intra-field flows still employ 12-to 24-inch pipes, especially across the Saudi Eastern Province and onshore Abu Dhabi. Sub-12-inch diameters serve well hookups but face competition from composites in certain offshore tie-ins where reduced topside weight is valuable.
Note: Segment shares of all individual segments available upon report purchase
By Application: Transmission Retains Demand Center of Gravity
Transmission networks accounted for 57.2% of the 2024 value and are forecast to drive the Middle East oil and gas line pipe market at a 4.5% CAGR due to sovereign-backed export corridors and gas grid expansions. The East-West Pipeline duplication and Iraq-Jordan link collectively exceed 5,000 km, anchoring tonnage into 2030. Gathering-system awards rise in tandem with Jafurah’s unconventional drilling, where Arabian Pipes Company won SAR 293 million in 2024 contracts. Down-hole casing moves in tandem with rig counts and remains cyclical, but provides steady, high-grade demand for premium-threaded, seamless supply. Injection lines for EOR require CRA liners, giving value uplift albeit smaller volumes.
Geography Analysis
Saudi Arabia’s 39.5% share reflects its deep pipeline backlog, including 4,000 km under Master Gas System Phase 3 and thousands more tied to Jafurah’s upstream-to-downstream integration. Local content scores under the IKTVA account for 40% of tenders, channeling spend toward resident mills, such as Arabian Pipes Company, which secured SAR 293 million for Jafurah in July 2024. SASO’s tightened pipeline safety code, modeled on ISO 3183, compels mills to certify higher fracture-toughness and weld-consistency standards.
Iraq’s 5.5% CAGR outlook rests on the Basra-Aqaba export corridor and gathering-line rebuilds at fields damaged during the conflict. Funding hurdles persist due to sanctions-related banking challenges, yet the project-by-project approach backed by Chinese lenders is keeping procurement moving at a steady pace. EPC players factor in route-security costs and schedule buffers, thereby elevating contingency allowances and prompting owners to adopt milestone-based payments.
In the UAE, ADNOC’s USD 17 billion Hail & Ghasha anchors line-pipe tonnage requires CRA-lined and stainless spools for the transport of 1.5 billion cfd of ultra-sour gas. Abu Dhabi’s ICV framework allocates up to 10% bid weighting to local manufacturing, incentivizing expansion at Abu Dhabi Metal Pipes & Profiles, which is adding CRA finishing lines.
Qatar’s North Field West requires 36-42 inch subsea pipes, built for a 25-year design life, which accelerates demand for SAWL (longitudinal) pipes with sour-service clad. The smaller Gulf states contribute steady maintenance demand: Kuwait’s Dorra unitization with Saudi Arabia lifts cross-border line-pipe packages, while Oman’s aging pipelines enter rolling replacement phases. Sanctions still restrict Iran’s access to high-grade steel and external finance; domestic supply meets only basic carbon-steel specifications, leaving demand for advanced alloys unmet.
Note: Segment shares of all individual segments available upon report purchase
Competitive Landscape
The Middle East oil and gas line pipe market is moderately fragmented, with domestic champions gaining market share through localization credits, while global majors focus on high-spec supply. Arabian Pipes Company, Abu Dhabi Metal Pipes & Profiles, and Emirates Steel Arkan collectively captured an estimated 18% of the revenue in 2024, benefiting from IKTVA and ICV weighting. Tenaris leveraged its new Jubail LSAW mill to land multiple Aramco LSTK packages, underscoring the value of in-country assets. Vallourec’s Middle-East revenues rose 52% in 2024 on elevated offshore orders requiring VAM premium connections.
Strategic moves feature capacity additions for duplex and super-duplex grades, with Emirates Steel Arkan committing USD 1 billion to low-carbon steel and alloy upgrades to secure demand for the hydrogen pipeline. Localization frameworks remain decisive: IKTVA scores improve when vendors integrate coating, threading, and testing domestically, resulting in a tender-price discount of up to 20%. Global suppliers respond through joint ventures, as exemplified by Tenaris Saudi Steel Pipes, which merges global technology with a local footprint to meet content rules and delivery timelines.
White-space plays revolve around hydrogen trunk lines and blue ammonia transport, where material and certification hurdles restrict the field to technically advanced mills. Meanwhile, CBAM risk is nudging GCC exporters to pivot toward regional job books rather than European downstream sales, moderating competitive intensity domestically as exporters redeploy capacity for local bids.
Middle-East Oil And Gas Line Pipe Industry Leaders
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Arabian Pipes Company
-
Rezayat Group
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Vallourec S.A.
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Tenaris SA
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Jindal SAW Ltd
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- August 2024: QatarEnergy signed USD 17-18 billion EPCs for North Field West, incorporating large-bore subsea lines.
- July 2024: Arabian Pipes Company won SAR 293 million (USD 78 million) Jafurah gathering-system order under IKTVA.
- June 2024: Saudi Aramco let USD 8.8 billion in Master Gas System Phase 3 pipeline contracts spanning 4,000 km.
- May 2024: Tenaris Saudi Steel Pipes completed Jubail LSAW mill expansion, doubling capacity.
Middle-East Oil And Gas Line Pipe Market Report Scope
Line pipe is a form of steel pipe that is used to move goods across the country via pipelines. Petroleum, natural gas, oil, and water can all be transported via line pipes. Line pipes are connected together to form a pipeline.
The market is segmented by type and geography. By type, the market is segmented into seamless and welded. The report also covers the market size and forecasts for the Middle-East Oil and Gas Line Pipe Market across the major countries in the region. For each segment, market sizing and forecasts have been done based on revenue (USD billion).
| Seamless |
| Welded (ERW and SAW) |
| Carbon Steel |
| Alloy Steel |
| Stainless/CRA |
| Duplex/Super-Duplex |
| Below 12 inch |
| 12 to 24 inch |
| Above 24 inch |
| Transmission (Onshore and Offshore) |
| Down-hole Casing and Tubing |
| Oil and Gas Gathering |
| Water/Gas Injection |
| Saudi Arabia |
| United Arab Emirates |
| Qatar |
| Kuwait |
| Oman |
| Bahrain |
| Iraq |
| Iran |
| Rest of Middle East |
| By Type | Seamless |
| Welded (ERW and SAW) | |
| By Material | Carbon Steel |
| Alloy Steel | |
| Stainless/CRA | |
| Duplex/Super-Duplex | |
| By Diameter | Below 12 inch |
| 12 to 24 inch | |
| Above 24 inch | |
| By Application | Transmission (Onshore and Offshore) |
| Down-hole Casing and Tubing | |
| Oil and Gas Gathering | |
| Water/Gas Injection | |
| By Geography | Saudi Arabia |
| United Arab Emirates | |
| Qatar | |
| Kuwait | |
| Oman | |
| Bahrain | |
| Iraq | |
| Iran | |
| Rest of Middle East |
Key Questions Answered in the Report
What is the current value of the Middle-East oil and gas line pipe market?
The market is valued at USD 6.30 billion in 2025 and is projected to reach USD 7.47 billion by 2030.
Which pipe technology holds the largest share?
Welded, chiefly spiral-welded pipes, accounts for 62.9% of revenue in 2024.
Which country leads spending on new pipelines?
Saudi Arabia commands 39.5% of regional line-pipe demand, underpinned by Jafurah and Master Gas System projects.
How fast is the Iraqi market growing?
Iraq is forecast to expand at a 5.5% CAGR through 2030 on the strength of the Basra-Aqaba export corridor.
What material segment is growing quickest?
Duplex and super-duplex stainless steel grades are advancing at 6.2% CAGR, driven by hydrogen and blue-ammonia projects.
How does EU CBAM affect GCC pipe exporters?
CBAM could raise landed costs by 25-50%, pushing GCC mills to focus more on domestic and regional projects.
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