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The Supply Contract of Natural Gas from Raízen to Yara is Five Years and the Volume Involved in the Transaction is 20 Thousand Cubic Meters Daily
On last Monday (09/20), Raízen announced its first long-term sale of renewable natural gas, or biomethane, with Yara Brasil Fertilizantes, in a five-year contract. The volume involved in the transaction is 20 thousand cubic meters per day, added the company that is controlled by Cosan. Check out this news as well: New Fortress Energy Secures 15-Year Contract to Supply Natural Gas to Alunorte Refinery in Pará, Owned by Norwegian Norsk Hydro
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The Supply from Raízen to Yara
The supply of natural gas (biomethane) will be carried out through Raízen’s portfolio, using the waste from the ethanol production process, vinasse, and filter cake, at the group’s bioenergy parks, and the product will be used by Yara for the production of green hydrogen and ammonia at its industrial facilities.
According to Raízen, this operation in the free natural gas market reinforces the company’s commitment to providing its customers with products and solutions that allow for the reduction of greenhouse gas emissions through increased efficiency and circularity of its processes, without the need for increased planted area, supporting the decarbonization of the global energy matrix.
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Also Check Out: Petrobras and Gerdau Sign Contract for Natural Gas Supply in Minas Gerais
Petrobras and Gerdau signed a contract for the supply of natural gas in the free trading environment for the Gerdau unit located in Ouro Branco, in the state of Minas Gerais. The contract signed between the companies represents the first contractual migration of a captive market customer to the free market and a milestone in the process of opening the natural gas market.
Rodrigo Costa, Director of Refining and Natural Gas at Petrobras, says that the direct agreement between Petrobras and Gerdau materializes Petrobras’ commitment to meeting consumer 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, allowing them better management of their natural gas purchasing portfolio. The agreed contract represents the indexing of a mix of products, valid until 2025. The contract provides Gerdau with supply security and commercial conditions more aligned with its operating profile, with the supply expected to start on January 1, 2022, after 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.
