Petrobras and Suzano formalize contract for supply of natural gas on the free market in São Paulo
Monday, May 19, 2025 1:00 pm
SAO PAULO (News release) - Petrobras and Suzano have formalized a natural gas supply contract for all of the company's units in the state of São Paulo, with the migration of the five São Paulo plants to the free market environment starting this month. The partnership with Suzano, one of the ten largest consumers of natural gas in Brazil and one of the main customers in this segment, marks the beginning of Petrobras' operations in the free market in the state. The move is part of a migration process to the free market, initiated in 2024 by Suzano, from the units located in Espírito Santo and Maranhão. The agreement reinforces the company's strategy of permanently seeking greater energy efficiency and makes the Jacareí, Limeira, Mogi das Cruzes, Suzano and Rio Verde units even more competitive. "The migration to the free market in the state of São Paulo is a strategic step to strengthen our competitiveness and energy efficiency, and reinforces our commitment to fostering a more flexible, dynamic and competitive natural gas market in Brazil," says Suzano's Executive Supply Manager, Viviane Lichtenstein. For Petrobras, the realization of this partnership represents confirmation of the competitiveness of Petrobras products in natural gas and the creation of opportunities for the supply of low-carbon energy solutions to companies in Brazil's industrial park, an important agenda in the company's strategic planning. "The industrial natural gas consumer market in São Paulo is the largest in the country and, as such, concentrates great opportunities in terms of placement of Petrobras' natural gas, such as the possibility of capturing synergies between Petrobras and customers, better conditions and flexibility to meet the demands of these industries and, ultimately, greater competitiveness for the sector", analyzes Petrobras' director of Energy Transition and Sustainability, Maurício Tolmasquim. To ensure supply of the input alone, Petrobras is planning US$7 billion in projects to expand infrastructure and domestic gas supply capacity, which will help reduce dependence on natural gas imports. The company has also been offering more flexible contracts, with different terms and indexes, allowing customers to choose the portfolio that best suits their needs.
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