Arcelor´s Brazilian activities to herald lower gas consumption in Europe
The stepping up of Luxembourg-based steel maker Arcelor´s activities in Brazil may herald a shift of the company´s gas-supported production from Europe to overseas.
The company, which is understood to consume about 120 million cubic metres (Mm3) of gas at its Luxembourg production sites, recently acquired a controlling interest of about 60% in the Brazilian slab maker Companhia Siderurgica de Tabarao (CST) by topping up its existing stake by 28%. CST produces about five million tones of steel slabs per year, according the ratings agency Standard & Poor´s.
The news follows Arcelor´s announcement last year that it will not replace its heavy steel making equipment at certain sites in Europe. The company is active in France, Germany, Belgium, Spain and Luxembourg. The decrease in European steel making capacity will lower the group´s gas requirements on this market.
Luxembourg´s annual gas consumption amounts to about 13.4 TWh or 1.18 billion cubic metres, about two-thirds of which is taken by industrial customers and power generators. Luxembourg´s dominant supplier SOTEG still claims a 95% share on the market, but has to prepare itself for stiffening competition as newcomers such as Gaz de France make inroads as the entire commercial customer segment will be opened by July. The residential sector will be open to competition by 1st July 2007.
Arcelor procures its gas exclusively from SOTEG, according to a company source. SOTEG is owned by the Luxembourg state (21%), German gas transmission groups Ruhrgas (20%) and Saar Ferngas (10%), further by raw materials group Arbed (20%), power supplier Cegedel (19%), and banking house SNCI (10%).
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23 May 2013 16:54
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EDEM,ESGM
23 May 2013 16:54
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EDEM,ESGM
