CSN leads the opening of the free natural gas market with a migration case at the Presidente Vargas Plant (UPV)

The largest integrated steel complex in Latin America, CSN is part of the country’s industrialization. And today, as the country’s main free gas consumer, it has the opportunity to once again make history by leading the migration of the Presidente Vargas Plant (UPV) in Volta Redonda (RJ) to the free natural gas market.

In this model, large consumers can freely choose their suppliers and are not tied to a single local distributor. This move aims to increase competition, reduce prices, and improve service quality. Thus, large consumers, such as CSN, can negotiate directly with natural gas producers or traders, instead of buying exclusively from regional concessionaires.

The opening of this market in the state of Rio de Janeiro was eagerly awaited, as Rio de Janeiro is the largest producer of natural gas in the country. CSN’s migration was finalized after signing a supply contract with a pool of companies that operate with natural gas, ensuring diversity and security of supply. In total, Companhia Siderúrgica Nacional has purchased 1,350,000 m³ of gas per day, a volume equivalent to about 60% of the local distributor and greater than the total consumption of some distributors in Brazil.

“This initiative positions us as the largest consumer of natural gas in the country operating in the free market. One of the major differences is that we contract not only the molecule, but also the outgoing transportation, following the active operation movement in the natural gas sector as a strategy to reduce costs and create value for the Company. This also allows us to capture spot purchase opportunities, combining short, medium, and long-term strategies,” says Rogério Pizeta, Energy Director at CSN.

According to Pizeta, the move to the free natural gas market, in addition to directly impacting cost reduction, is aligned with the Company’s decarbonization strategy, driving new projects in the various segments of the CSN Group. “It is an initiative that opens an important path, including for the use of natural gas in other processes within CSN’s various areas of activity. These are options that should be studied and represent a significant step forward for the Group’s energy transition agenda,” he points out.

Partners

To enable the free market for natural gas in the state of Rio de Janeiro, CSN has partnered with major suppliers. “The progress of the regulatory environment for the opening of the free gas market is an extremely important milestone and a signal for other states to also develop in this direction. Being chosen as a business partner in this new phase is an honor for Shell Energy Brasil, and we are certain that this migration will give CSN the flexibility, liquidity, and competitiveness it is seeking,” says Rodrigo Soares, President of Shell Energy Brasil.

“Petrobras and CSN are establishing their first commercial relationship in the free natural gas market, betting on the development of solutions to enable an open, competitive, transparent, sustainable, and increasingly developed trading environment in the country, and serving as a step toward joint evaluation of new solutions in decarbonization and energy transition,” says Petrobras’ Director of Energy Transition and Sustainability, Maurício Tolmasquim.

“We are very pleased to support CSN in this important transition to the free natural gas market. This move not only represents a significant milestone for CSN, but also strengthens the competitiveness and efficiency of the gas market in Brazil. We are committed to providing our customers with more competitive, secure, and flexible natural gas purchasing solutions that meet their needs and drive the development of the industrial sector in the country,” said Thiago Arakaki, Director of Natural Gas at Galp.

About CSN

Founded in 1941, CSN was the first integrated flat steel producer in Brazil, a milestone in the country’s industrialization process. In 1993, after more than five decades as a state-owned company, the Company entered a new era when it was privatized and assumed a new market position. Today, CSN is not only a national steel company, but also a world-renowned company in the mining, cement, energy, and logistics sectors, thanks to the dedication of its more than 40,000 employees.

Currently, the CSN Group is present in 17 Brazilian states and also operates in two other countries – Germany and Portugal – with its shares listed on the São Paulo (BM&FBovespa) and New York (NYSE) stock exchanges. The company’s social leadership is concentrated in the CSN Foundation, with projects that contribute to the social transformation of the community in the areas of education, community development, culture, and sports.