Germany-based steelmaker Salzgitter is in talks with regulators to secure an exemption from potential natural gas rationing in the case of a further reduction in natural gas supply from Russian gas monopoly Gazprom, according to a report by Reuters. Gazprom, which declared force majeure to European customers in July, is now delivering only a fifth of agreed volumes via the Nord Stream 1 pipeline. Several other major companies are also seeking exemptions from potential natural gas rationing, SteelOrbis understands.
According to the company’s statement, the delivery volumes of Russian natural gas have declined by around 60 percent in recent weeks. At the political level, countermeasures, such as substituting coal-fired generation for gas, as well as further savings on natural gas in industry and in households are under discussion. Furthermore, the construction of LNG terminals on the coast and ramping up imports from Norway and the Netherlands have been initiated in order to significantly mitigate the medium-term dependence on Russian gas and to achieve independence.
Meanwhile, German steelmaker Thyssenkrupp may suspend its production amid the current low supply of natural gas from Russia to European steelmakers, as SteelOrbis previously reported.