Sao Paulo – Vale (NYSE: VALE) said on Tuesday that it had signed deals with Eneva and Origem Energia for natural gas supplies under free market conditions as part of its goal to source 90% of its intake from the free market by 2025.
Unlike the captive market, in which the customer buys energy from a distributor at a regulated price, under the free energy market Vale is able to negotiate prices directly with its suppliers.
According to Vale, the contracts signed with Eneva and Origem Energia will supply its Tubarao unit in the Southeastern state of Espirito Santo, responsible for around 60% of all of Vale’s natural gas consumption, until December 2025.
“Our goal is to obtain a reliable supply of natural gas at competitive prices in a more open, dynamic and transparent market,” said Vale’s director of strategic supplies, Mariana Rosas, in a statement.
(Reporting by Leticia FucuchimaEditing by Mark Potter)
