Nigeria happens to be one of the biggest natural gas capitals in the world these days, and that means everyone is clamoring at being able to drill for oil and other gases in the country. Unfortunately, a recent act that was passed in Nigeria created an interesting incident that could promote the economy in Nigeria but also lose business to steel pipe manufacturers in other parts of the world. Nigeria feels that companies who are pumping supplies in their country should at the very least be using pipes in their country, the only problem is Nigeria isn’t producing enough pipes for all the pumping that is being expanded.
This all has to do with another law that was passed around Nigeria using natural gases as a way of getting electricity through the country. Strangely enough the law was passed nearly four years ago now, and has only just in the past few months receiving quite a boost to the amount of investors that have been interested in setting up steel pipe mills in the country and actually getting the mills completed.
Most of these steel mills are set to be completed before the end of 2015, but it does press an interesting issue. With so much of the pipe industry going out to Nigeria could it mean that Nigeria could also become a future major supplier of pipes to everywhere in the world? It is certainly a possibility that we have no way of quite knowing right now. At the time, the mills will be solely used for steel pipes in the country of Nigeria, but much like how China creates all their steel for their country and just happens to produce excess they can sell else where we know that Nigeria could do the same. Could the steel industry in the US be taking yet another hit other than the loss of business in Nigeria alone?
Well if history repeats itself, it certainly does seem like the steel industry in America is being squashed repeatedly.