Mexican steelmakers allowed to transport gas through pipes following bid

Mexican gas pipeline administrator Cenagas awarded several steelmakers permission to transport natural gas, following the country’s long-awaited open season for natural gas pipeline capacity.

 

As a result of the one-year concession, which will be effective on July 1, 2017, several local steelmakers, including ArcelorMittal Mexico, will be able to transport natural gas through pipes without needing the intermediation of local state-run companies.

 

Cenagas unveiled this week an extensive list of companies allowed to use the national gas pipeline system. ArcelorMittal Mexico was the only steelmaker listed as a natural gas provider.

 

All other steelmakers, including Altos Hornos de Mexico (AHMSA), Deacero, Tenaris Tamsa, Ternium Mexico, Gerdau Corsa, Simec, and local manganese and ferroalloys producer Minera Autlan were listed as approved to use the system through state-owned energy producer Pemex.