The nation's crude steel output slipped 0.3 percent to a nine-year low in 2018, as a string of natural disasters and glitches at steel plants led to slower production.
Kyushu Electric and Tokyo Gas said instead they will consider building a gas-fired power plant, using liquefied natural gas (LNG), at the same site owned by Idemitsu.
CSN is aiming to reduce debts that piled up after an iron ore and steel price rout in 2015-2016 and a severe recession in Brazil, prompting investors to demand asset sales.
