Naftogaz Group will cover ArcelorMittal Kryvyi Rih’s gas demand for more than six months

Nafogaz Group’s subsidiary, Naftogaz Trading, has approved a gas purchase deal with ArcelorMittal Kryvyi Rih, one of the largest steel producers in Ukraine. The agreement was signed on April 28, 2023.

In total, ArcelorMittal Kryvyi Rih purchased 200 million cubic meters of natural gas from Naftogaz Trading. 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," commented Naftogaz Group CEO Oleksiy Chernyshov.

Reliable supplies will enable ArcelorMittal Kryvyi Rih to increase production, which has been reduced as a result of Russia's full-scale invasion of Ukraine.

Two heavyweights of the Ukrainian economy, Naftogaz Group and the country's largest mining and steel enterprise, have decided on strategic cooperation, which is one of the key factors for uninterrupted production. ArcelorMittal Kryvyi Rih 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 since the start of the full-scale war. This partnership with Naftogaz Trading will strengthen both our business and our country," commented Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih.

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Naftogaz Group carries out a full cycle of operations including exploration and development of fields, production and exploratory drilling, transportation and storage of oil and gas as well as supply of natural and liquefied gas to consumers.

The Group is the leading Ukrainian hydrocarbons producer and national contractor for import and transit. Naftogaz stores gas in Europe’s largest underground storage facilities and ensures reliable and secure gas supply country-wise amidst implementation of market reforms and countering Russian aggression.

ArcelorMittal Kryvyi Rih operates as part of ArcelorMittal, a global steelmaker and the largest foreign investor in Ukraine. The Company runs a full metallurgical cycle: mining (open pit and underground mining), coke and by-product process and metallurgical production. It employs nearly 26,000 people.

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