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Soaring gas prices penalize the activity of energy-intensive European factories. Engie is alarmed this week by a sharp drop in gas consumption by the steel and glass industries. According to the French energy group, this means that these sectors have massively reduced their production. Engie’s announcement comes the day before a meeting of EU energy ministers, scheduled for Friday, where emergency measures to stem soaring gas prices will be discussed.
The use of gas by European industries, which consume a lot of energy, has fallen by 30% since Russia invaded Ukraine, according to Jean-Pierre Clamadieu, chairman of the board of directors of Engie. Faced with soaring prices, several manufacturers in Europe have reduced their production, some have even decided to stop their activity. Example: the production of zinc and aluminum has fallen by almost half compared to last autumn. In a letter to the European Commission, the bosses of 40 industrial metal groups sound the alarm on a crisis that threatens employment and industrial independence in Europe.
They are also worried about a loss of their competitiveness, while their competitors in countries such as Brazil, China, Australia and the United States have increased production. The European Union therefore risks becoming increasingly dependent on imports. This comes at a time when metals are in high demand to ensure the energy transition in the Old Continent and elsewhere in the world. According to the International Energy Agency, global metal consumption is expected to increase sharply by 2050 and exceed 45 million tonnes.
Faced with this situation, manufacturers are asking for help from the European Union to stem the rise in prices. Capping the price of gas at European level is one of the options on the table of energy ministers. This idea is supported by 15 EU member countries including France. But some countries have not waited for Brussels to help their businesses and have already taken their own measures. In the meantime, the energy giants are posting record revenues. TotalEnergies announced on Thursday that it will pay its shareholders an exceptional interim dividend of 2.62 billion euros.