On April 28, 2023, Gas Supply Company Naftogaz Trading LLC, which is part of the Naftogaz Group, concluded an agreement on the supply of natural gas with ArcelorMittal Kryvyi Rih PJSC. This was reported by the Naftogaz press service.
According to the contract, the volume of deliveries is 200 mcm, which, according to Naftogaz, covers more than half of ArcelorMittal's annual natural gas needs. The price of gas at which Naftogaz will supply gas to the enterprise is currently unknown.
"This agreement is a very important step for Naftogaz Group. First, we support the Ukrainian industry in this way because the guaranteed supply of gas today is an important factor for ensuring the sustainability of production. On the other hand, this is an opportunity for us to increase our presence in the industrial segment of the market and finally consolidate the status of the most reliable supplier of natural gas in Ukraine," said Oleksiy Chernyshov, head of Naftogaz.
Naftogaz noted that reliable supply will enable ArcelorMittal Kryvyi Rih to increase production levels, which have decreased because of Russia's full-scale invasion of Ukraine.
"Two heavyweights of the Ukrainian economy - the Naftogaz Group and the country's largest mining and metallurgical enterprise - have decided on strategic collaboration, which is one of the key prerequisites for uninterrupted production. ArcelorMittal Kryvyi Rih uses natural gas in almost all its production processes. Having a stable supply increases our chances this year to gradually increase production and bring industrial units into operation after the forced pause since the outbreak of full-scale war. The partnership with Naftogaz Trading will strengthen both our business and our state, said Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih.
As a reminder, on May 1, Naftogaz purchased 12.2 mcm of the May-booked resource at the weighted average price of 10,795 UAH/tcm (without VAT) on the Ukrainian Energy Exchange.
