Brazilian integrated steelmaker Gerdau was granted permission by local regulators to import a combined 519,000 cubic meters per day of natural gas, SteelOrbis has learned.
The Ministry of Mines and Energy, MME, which regulates the energy and mining sectors, allowed the company to import the product for a three-year period from Bolivia. MME issued three authorizations for Gerdau to import the product, each for a different subsidiary.
Gerdau Aços Especiais, the specialty steel unit of Gerdau, may import up to 140,000 cubic meters per day of natural gas. Gerdau Açominas may import up to 210,000 cubic meters per day, while Gerdau Aços Longos, the long steel arm of Gerdau, may import up to 169,000 cubic meters per day of natural gas.
MME said Gerdau will be required to report the quantity of natural gas imported, as well as to provide the actual contracts and disclose the price it paid for the product.
SteelOrbis understands Gerdau will use the natural gas to run part of its operations.