Competing with propane gas in the iron, steel and metallurgy processes are: electricity and natural gas.
Due to its characteristics, gas oil cannot be used in every process. In fact, many of the furnaces that are essential for metallurgy processes are not designed to run on gas oil. Therefore, electricity is the direct competition of propane gas in this sector. Natural gas, because it is currently cheaper, supersedes propane gas in this sector (in locations where it is economically feasible to make natural gas available). In zones where natural gas is available, propane gas is generally only used in the metallurgy industry for medium or high “value added” products, with consumption of less than 100 metric tons/ year. In this context, the initial investment costs of connecting to natural gas are high.