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NTS Executes Two New Interruptible Service Contracts. Agreements with Shell and Gerdau Provide for Gas Delivery in the Free Market
After already transporting gas in its infrastructure for Petrobras and Galp, Nova Transportadora do Sudeste (NTS) announces the start of transportation for two new shippers: Shell (inbound) and Gerdau (outbound). The agreements establish the transportation of natural gas until December 28.
According to the commercial director of NTS, Helder Ferraz, this operation marks, for the first time, the initiation of gas movement from NTS to a free consumer!
“By offering already contracted capacity that is currently idle, the interruptible contract allows new shippers to utilize the network in a more dynamic way, without the need for a public call – a differential that adds agility to the process,” highlights.
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NTS Invests R$ 12 Billion in Its Strategic Plan in the Natural Gas Market
With investments announced at R$ 12 billion in its strategic plan, NTS aims to increase the supply of transportation capacity provided, expanding its customer base in a coordinated expansion. “The natural gas market and the regions that require supply gain more competitiveness in their activities, with greater energy supply and transportation infrastructure,” declares Helder Ferraz.
“For Gerdau, this new contract represents an evolution in the management of its portfolio and risks in the free contracting environment. Furthermore, the agreement highlights the company’s pioneering role in the gas market to create competitive and sustainable supply alternatives for our plant in Ouro Branco (MG),” says Flávia Souza, global purchasing director at Gerdau.
“This short-term operation is a milestone for Shell Energy Brazil, as it is the execution of our first natural gas transportation contract for the Southeast region. It is even more special because it involves Gerdau at the other end, with whom we share the vision of seeking clean energy solutions – and in this strategy, natural gas is fundamental,” stated Christian Iturri, CEO of Shell Energy Brazil.
NTS is a national company, established in 2017, with the mission of transporting natural gas sustainably and securely. With over 2,000 km of pipeline and a delivery capacity of 67 million m³, it accounts for 50% of all natural gas transported in Brazil, connecting the states of Rio de Janeiro, Minas Gerais, and São Paulo to the TAG and TBG pipelines, as well as to LNG terminals and gas processing plants.
About Gerdau
With 121 years of history, Gerdau is the largest Brazilian steel producer and one of the main suppliers of long steels in the Americas and special steels worldwide. In Brazil, it also produces flat steels, as well as iron ore for its own consumption. In addition, it has a new business division, Gerdau Next, aimed at venturing into segments adjacent to steel. With the purpose of empowering people who build the future, the company is present in 9 countries and employs over 36,000 direct and indirect employees across all its operations.
As the largest recycler in Latin America, Gerdau considers scrap metal an important raw material: 71% of the steel it produces is made from this material. Every year, 11 million tons of scrap are transformed into various steel products. The company is also the largest producer of charcoal in the world, with more than 250,000 hectares of forest base in the state of Minas Gerais. As a result of its sustainable production matrix, Gerdau currently has one of the lowest averages of greenhouse gas emissions (CO₂e), at 0.90 t of CO₂e per ton of steel, which represents approximately half of the global industry average of 1.89 t of CO₂e per ton of steel (worldsteel).
By 2031, Gerdau aims to reduce carbon emissions to 0.83 t of CO₂e per ton of steel. Gerdau’s actions are listed on the stock exchanges of São Paulo (B3), New York (NYSE), and Madrid (Latibex).
About Shell Brazil and Shell Energy Brazil:
With 109 years in the country, Shell is an integrated energy company with participation in Upstream, the New Natural Gas Market, Trading, Research & Development, and Renewable Energy Development.
In 2021, it launched the Shell Energy Brazil brand in the country, aimed at renewable energy, natural gas, energy trading in the free market, and environmental product marketing. Shell Energy Brazil has operated as a trader since 2017.
Here, fuel distribution is managed by the joint venture Raízen, which recently also acquired Shell Brazil’s lubricants business.
The company works to meet the growing demand for energy in an economically, environmentally, and socially responsible manner, evaluating trends and scenarios to respond to the challenges of the future of energy.
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