ENERGY Pipeline News reports that Indian steel pipe makers are doubling their capacities in order to meet strong demand from West Asia, where China in particular is lacing the country with oil and gas pipelines. Indian mills are looking at revenues of up to $1bn in the fiscal year ending in March, 2007, as high energy prices spur world-wide efforts to raise oil and gas output. Indian manufacturers are benefiting from their lower cost of production and cheaper freight, which is nearly half that of European fabricators. Officials at India's top four pipe makers are forecasting that revenues will jump 50% to more than $2bn, with half of that coming from exports, mainly to West Asia. PSL Ltd, India's second-largest pipe maker that obtains almost 40% of its revenues from West Asia, is planning to build a $15-million unit in the UAE to meet demand. The number-three manufacturer, Welspun Gujarat Stahl Rohren Ltd, is also in the midst of an expansion, planning to export more than 40% of its current orders to West Asia, up from 5% in 2003-2004. "Indian suppliers on the west coast are 2-3 days away from the Middle East, while European or Japanese companies have a much longer route, driving up their freight costs," Amol Rao, analyst at Mumbai-based Pioneer Intermediaries, says. He also points out that labour costs are at least a fifth lower in India compared to those in Europe. Eighty-one projects planned in the Middle East and Asian region will need 64,730km of steel pipe, according to Simdex Steel Tubes Manufacturers' Worldwide Index, a pipe projects guide. India alone will need 21,000km of pipeline over the next five years. Vinay Gupta, a vice president at India's top pipe maker, Jindal Saw Ltd, said demand is also picking up to replace old pipelines in the United States. "Our US facility, which caters to about 30% of our exports, is booked till April, 2007," he said.