Brazilian integrated steelmaker Gerdau said this week it has signed a natural gas supply contract with state-run oil and energy producer Petrobras. The steelmaker said the contract offers security and commercial conditions that are in line with Gerdau’s operational profile.
Gerdau should start receiving the product effectively from January 1, 2022, as it signs a contract with a local distributor. The natural gas supply contract represents a landmark for Petrobras, Gerdau said, as it offers a more flexible pricing model to the wholesale market in Brazil.
Gerdau’s Ouro Branco mill, located in the city of same name in Minas Gerais state, is the steelmaker’s largest mill in Brazil.