Petrobras, Gerdau and Sulgás have signed contracts to supply natural gas in a free trading environment, serving the special steel production unit in Charqueadas and the long steel production plant in Sapucaia do Sul, called Riograndense, located in Rio Grande do Sul. The agreement marks the first migration of a client from the captive industrial market to the free market in the state of Rio Grande do Sul. Thus, the company becomes a pioneer in the change to this trading model in the state, whose rules were recently approved by the regulatory agency of Rio Grande do Sul (AGERGS) and the government of the state of RS.
“The expansion of the partnership between Petrobras and Gerdau in the free gas market demonstrates that Petrobras’ natural gas sales portfolio is becoming more competitive and attractive every day. We are investing more than US$7 billion in new natural gas supply infrastructures, in addition to offering several flexible contract options, tailored to customer needs, with different terms and indexes, contributing to the decarbonization and increased competitiveness of the national industry,” says Maurício Tolmasquim, Petrobras’ director of Energy Transition and Sustainability.
“Gerdau, whose century-old history began more than 123 years ago in Rio Grande do Sul, has the state as one of its bases for long-term growth and this agreement reaffirms the company’s commitment to strengthening the competitiveness of its operations. The new partnership with Petrobras, made possible by Sulgás’ distribution operations, represents a pioneering and innovative move in the search for the development of the free market for natural gas in Rio Grande do Sul, an input that we believe will be fundamental for the production and decarbonization of steel in the coming years,” says Flávia Souza, global director of energy and supplies at Gerdau.
In this context, Gerdau, Petrobras and Sulgás consolidate their commercial, partnership and pioneering ties in the free natural gas market, investing in the development of solutions to create an open, competitive, transparent, sustainable and increasingly advanced commercialization environment in the country.
“The free market is positive for all market players. Consumers now have greater freedom of choice, suppliers operate in a more open and competitive market, and the distributor remains focused on expanding and operating the network with safety and excellence, connecting more consumers to the system. Sulgás’ purpose is to promote the development of Rio Grande do Sul. Supporting and integrating the free gas market is part of this journey,” says Sulgás CEO Marcelo Leite.
“The State, through the Secretariat of the Environment and Infrastructure, monitored the process that culminated in Gerdau’s migration to the free natural gas market and understands that this migration increases the competitive environment, bringing energy efficiency to the industry. Rio Grande do Sul, which has a diversified energy matrix, understands the relationship that sufficiency has with economic development,” stated the secretary of the department, Marjorie Kauffmann.
“The free natural gas market represents a step forward for the sector in the state of Rio Grande do Sul, largely the result of AGERGS’s actions since 2021, as a new player in this environment, responsible for independent and impartial technical regulation. With this, the economy of Rio Grande do Sul becomes more competitive at a strategic moment for the reconstruction of the state”, says Luciana Luso de Carvalho, President of AGERGS.
The partnership between Petrobras and Gerdau for the supply of natural gas in the free trading environment for this input began in 2021, with the supply of the Ouro Branco (MG) plant. In June of this year, the companies announced the migration of the Cosigua unit, located in Rio de Janeiro.