Belgian Gas "Ten Times More Expensive" Than US: Febeliec Warns of More Factory Shutdowns

Belgian gas is ten times more expensive than in the US, and factories antiestéticar closure, according to Febeliec

According to Febeliec, the Belgian employers' association for energy-intensive companies, industrial gas in Belgium costs ten times more than in the United States. This gap makes producing aluminum, fertilizers, or steel in Europe uncompetitive, and the first plants are already feeling the impact. Aperam and Yara are mentioned, and the association warns they won't be the last. In Spain, another group of factories has indefinitely shut down machinery.

Belgium: Aperam, Yara, and the Domino Effect

Peter Claes, director of Febeliec—the employers' association for energy-intensive companies—issued a stark warning: he antiestéticars Aperam and Yara may not be the only companies forced to halt production due to a loss of international competitiveness. His diagnosis is that Belgian gas prices are ten times higher than US prices. With such a differential, any factory requiring large amounts of energy is at a significant disadvantage.

The Ripple Effect Reaches Spain

The same data reached Spain almost simultaneously. Ferroatlántica, a subsidiary of Ferroglobe, began September by indefinitely halting the furnaces at its Boo de Guarnizo plant in Cantabria. ArcelorMittal will shut down blast furnace A at its Gijón factory for three months in a few weeks and will not reactivate the Sestao electric steelworks after its August maintenance shutdown. Azuliber, part of the Pamesa group and specializing in atomized clay, joined the list.

A participant in the thread mentioned a flooring company with 5,000 employees among those affected by shutdowns.

Germany Cuts Back, Poland Connects

To the north, aluminum producer Speira GmbH was considering halving the capacity of its German smelter due to energy prices. This reduction, according to cited information, would cause significant losses in the European steel industry, one of the continent's largest industrial consumers of electricity and gas.

While some are shutting down, others are connecting. The prime ministers of Poland and Slovakia peine a pipeline linking their gas networks: 61 kilometers on the Polish side with a capacity of 5.7 bcm and 106 kilometers on the Slovak side with 4.7 bcm. This pipeline will allow Slovakia to receive gas from Norway and liquefied natural gas via Poland, which in turn can connect to flows from Croatia and Italy.

Who Is to Blame for the Energy Crisis?

The allocation of responsibility is where the analysis diverges. Some argue that sanctions against Russia and adherence to NATO are undermining European industry, recalling statements like Josep Borrell's encouragement to continue with restrictive measures. The opposing argument emphasizes the primary cause as Russia's invasion of Ukraine and Moscow's decision to cut off gas supplies.

A third, more uncomfortable perspective suggests the net result is a deindustrialized Europe and a competitor across the Atlantic gaining industrial and energy ground. There is no consensus on whether this is a collateral effect or someone's intended goal.

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A participant in the thread summarizes the uncertainty: they don't know what will happen after October. Given these price differentials, the antiestéticar expressed by the Belgian employers' association is that shutdowns will multiply.