Petrobras and CSN Signs Deal to Supply Natural Gas in Rio

Petrobras and CSN have entered into a significant contract to supply natural gas to CSN's steel plant in Rio de Janeiro (RJ). As part of this agreement, CSN has transitioned its operations to the free natural gas market, with Petrobras emerging as the primary supplier among several others. This new partnership is centered on fostering a long-term relationship and creating opportunities that align with both companies' decarbonization goals.

During the second quarter alone, Petrobras signed and amended several natural gas supply contracts within the free consumer category, amounting to approximately 940 thousand cubic meters per day. Maurício Tolmasquim, Petrobras’s Energy Transition and Sustainability Director emphasized the importance of this first collaboration in the natural gas free market. He noted that both companies are committed to developing solutions that promote an open, competitive, transparent, and sustainable trading environment in Brazil. This partnership also represents a key step toward exploring joint decarbonization and energy transition initiatives.

With this contract, Petrobras and CSN plan to optimize natural gas consumption in various processes, all in line with their energy transition objectives. The agreement specifically covers the migration of the Presidente Vargas Power Plant (UPV) in Volta Redonda (RJ) to the free natural gas market.

Rogério Pizeta, CSN’s Energy Director, highlighted the significance of this move, stating that CSN has now become the leading industrial consumer of natural gas in Brazil's free market. By actively engaging in the natural gas segment, CSN aims to reduce costs and enhance the company's value. This strategic approach includes not only the procurement of natural gas itself but also the management of its transportation, reinforcing CSN's commitment to operating efficiently in this evolving market.

This partnership marks a pivotal moment for both companies as they work together to drive innovation in the energy sector while advancing their shared goals of sustainability and decarbonization.

Petróleo Brasileiro S.A., commonly known as Petrobras, is a state-owned Brazilian multinational corporation specializing in the petroleum industry. Headquartered in Rio de Janeiro, Brazil, the company's name translates to Brazilian Petroleum Corporation - Petrobras. As a publicly traded entity, Petrobras operates across the oil, natural gas, and energy sectors with an integrated and specialized approach. The company boasts extensive expertise in exploration and production, honed over decades of development in Brazil's oil fields, particularly in deep and ultra-deep waters. Petrobras's operations extend beyond oil and gas extraction. This involves a comprehensive process where the company transports oil and gas to its refineries and natural gas processing units.