6 July 2015 - 11:17
  • News ID: 243868
$4.2b Corrosion Market Up for Grab in Middle East

TEHRAN July 06(Shana)--There is an opportunity for Iranian active contractors in the field of protecting oil and gas pipes from corrosion to acquire a market with $4.2 billion annual turnover by developing their activities in domestic and neighboring markets.

According to the website of National American Corrosion Engineers International Society (NACE), corrosion is a result of chemical reaction between a material and its environment; corrosion may not be completely protected but will be controlled by employing modern sciences.
 
Corrosion is a destructive phenomenon that may cause unforeseen costs for various industries. Statistics of direct and indirect damages of corrosion have revealed the significance of investigating resulted costs.

NACE estimations about corrosion damages revealed that they include about 2-4 percent of Gross Domestic Product (GDP) of developed industrial countries; but this value for countries like Iran, that are not employing corrosion protection methods, is about 5% of GDP. 


ميزان زيان زدن خوردگي

Generally, corrosions includes all equipment and facilities which are used in industries and related environments. This article reviews corrosion of oil, gas, water, and condensate pipelines and related service market.

Relevant reports about corrosion of oil, gas, water and condensates pipelines and as per statistics of The World Fact Book suggest that the U.S.A is the pioneer of this industry by enjoying over 2 million km of pipelines. 

“Corrosion damages in the U.S cost more than $276 billion per year (equal to 3.1% of U.S.A GDP) from which an amount of $22.6 billion is dedicated to oil, gas, refining and distribution pipelines”, reported NACE.

Given the lack of sufficient statistical data on damages caused by corrosion in Middle East countries, and as suggested by NACE reviews, it is only possible to estimate corrosion damages in countries like Iran.


طول خط لوله به انگليسي تا سال 2013

According to a 2013 report by the World Fact Book, the total volume of pipelines was nearly 411,000km in Iran and 16 neighboring countries including Iraq, Turkmenistan, Afghanistan, Republic of Azerbaijan, Turkey, Armenia, Oman, Saudi Arabia, Kuwait, UAE, Qatar, Bahrain, Russia, Kazakhstan and Tajikistan (Including inland and offshore borders). 

As corrosion standards in Iran and its neighbors is always less than US standards, it can be concluded that corrosion damages in Iran and other 16 countries (corrosion damages in pipelines and other sectors) cost more than $50 billion from which an amount of $4.2 billion is for pipelines corrosion.

According to the current report, minimum cost of every kilometer of oil, gas and condensate pipelines’ corrosion is about $10,200. 

As mentioned before, a regional market valued at over $4.2 billion awaits active Iranian contractors mature enough to protect oil and gas pipelines from corrosion and can reach out for pipelines in areas which were previously inoperable.

Considerable volume of pipelines in Iran and its neighbors indicates that private sector companies that are providing oil and pipelines services may face appropriate conditions for profitable investment and entrepreneurship by instructing Non-Destructive Testing (NDT) to their human resources. Moreover, establishment and development of powerful companies in the field of corrosion and NDT requires considerable training that is completely enforceable in our country given the presence of professional experts and cooperation of Iranian Corrosion Association.

 
Ali Malaki
Expert in Corrosion and NDT 
SAIT Polytechniqie, Calgary, Canada
News ID 243868

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