Naftogaz to supply 200 mcm of gas to ArcelorMittal Krivoi Rog

MOSCOW. May 2 (Interfax) - Gas supplier Naftogaz Trading, part of the Naftogaz Group, and ArcelorMittal Krivoi Rog, one of Ukraine's biggest steel producers, have signed an agreement for the purchase of 200 million cubic meters of natural gas.

The agreement was signed on April 28, 2023, Ukrainian media quoted a statement posted on Naftogaz website as saying.

This volume covers approximately more than half of the company's annual demand for gas.

"This agreement is a very important step for Naftogaz Group. First of all, we are supporting Ukrainian industry, since guaranteed gas supply is a vital factor to ensure sustainability of production today. This is also an opportunity for Naftogaz to enlarge our footprint in the industrial segment of the market and finally consolidate our status as the most reliable natural gas supplier in Ukraine," said Naftogaz Group CEO Alexei Chernyshov.

The companies have decided on strategic cooperation, which is one of the key factors for uninterrupted production, said Mauro Longobardo, CEO of ArcelorMittal Krivoi Rog.

"ArcelorMittal Krivoi Rog uses natural gas in almost all its production processes. Having a stable supply enhances our chances of gradually increasing production and putting industrial units into operation this year after a forced shutdown," Longobardo said.

ArcelorMittal Krivoi Rog is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, in particular rebar and wire rod.