Petrobras and Gerdau Sign Contract for Natural Gas Supply in Minas Gerais

Written by Roberta Souza

Published on 13/09/2021 at 15:21

Fornecimento de Gás/ Fonte: E-Investidor

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The Natural Gas Supply Contract Between Gerdau and Petrobras Will Be for the Unit in Ouro Branco, in the State of Minas Gerais

This morning (09/13), Petrobras and Gerdau signed a contract for the supply of natural gas in the free trading environment to serve Gerdau’s unit located in Ouro Branco, in the state of Minas Gerais. The contract signed between the companies represents the first contractual migration of a customer from the captive market to the free market and a milestone in the opening process of the natural gas market. CLICK HERE TO READ THE STATEMENT ISSUED BY PETROBRAS.

The Supply of Natural Gas for Gerdau

Rodrigo Costa, Director of Refining and Natural Gas at Petrobras, states that the direct agreement between Petrobras and Gerdau materializes Petrobras’s guidance to meet the consumer’s objectives, offering new products and commercial solutions that align with customer needs, ensuring reliability, competitiveness, flexibility, and satisfaction for both companies.

For Petrobras, the contract with Gerdau is part of the portfolio of new products launched in 2021, which offers its customers new commercial conditions, enabling them to better manage their natural gas purchasing portfolio. The agreed contract represents the indexing of a mix of products, valid until 2025.

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The Development and Supply of the Natural Gas Market

The contract provides Gerdau with supply security and commercial conditions that are more aligned with its operational profile, with the start of supply expected to occur on January 1, 2022, and following the signing of a distribution service contract between Gerdau and the respective Local Distribution Company, in accordance with the legal and regulatory evolution of the natural gas market in Minas Gerais.

Vinicius Moura, General Manager of Supply at Gerdau, states that this partnership with Petrobras crowns Gerdau’s strategy to seek the development and supply of the gas market in Brazil. In this way, we understand that with a developed market, more players will follow in the same direction, and new opportunities will arise, says the Gerdau executive.

Also Read: Gerdau Will Invest R$ 6 Billion to Expand Production in the State of Minas Gerais. About 6,000 Jobs Will Be Created

Gerdau announced an investment plan of R$ 6 billion in the state of Minas Gerais over the next five years, for modernization, technological updates, and expansion of its local operations. With this investment, the company reinforces its commitment to the sustainable, economic, and social development of the state and will create more than 6,000 direct and indirect jobs.

Gerdau’s investments will be divided into three axes: growth, technological updates, and diversification, with the enhancement of environmental practices being a cross-cutting principle of the announced program. This is a plan that will cover all regions of Minas Gerais, where the company operates, benefiting dozens of municipalities in steel production, mining, renewable energy production, and plantation forestry activities.

Two significant investments in expanding steel production will take place in Ouro Branco, Minas Gerais, where the company has its main production plant. The unit’s annual hot-rolled coils production capacity will be increased by 250,000 tons/year, with production expected to start in early 2024. Additionally, Gerdau is expanding the production of structural profiles by 500,000 tons/year, doubling the current capacity, with production start projected for 2025. With this, Gerdau aims to continue meeting the growing demand from consumers of these products in Brazil and Latin America.

Petrobras and Gerdau Sign Contract for Natural Gas Supply in Minas Gerais

The Natural Gas Supply Contract Between Gerdau and Petrobras Will Be for the Unit in Ouro Branco, in the State of Minas Gerais

The Supply of Natural Gas for Gerdau

The Development and Supply of the Natural Gas Market

Also Read: Gerdau Will Invest R$ 6 Billion to Expand Production in the State of Minas Gerais. About 6,000 Jobs Will Be Created

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Petrobras and Gerdau Sign Contract for Natural Gas Supply in Minas Gerais

The Natural Gas Supply Contract Between Gerdau and Petrobras Will Be for the Unit in Ouro Branco, in the State of Minas Gerais

The Supply of Natural Gas for Gerdau

The Development and Supply of the Natural Gas Market

Also Read: Gerdau Will Invest R$ 6 Billion to Expand Production in the State of Minas Gerais. About 6,000 Jobs Will Be Created

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