New long-term contracts secure multi-billion-dollar feedstock supplies for Braskem, ensuring price alignment, expansion support, and strengthened governance through 2036.
Brazil’s state-controlled energy major has confirmed a series of new long-term supply agreements with Braskem, reinforcing its position as a strategic raw material provider to the country’s largest petrochemical company as existing contracts approach their expiry. These multi-year arrangements are designed to ensure continuity of supply, price transparency, and long-term planning certainty for both parties, while also supporting Braskem’s expansion and operational stability across several regions of Brazil.
Under the newly signed contracts, supplies will be delivered to Braskem’s industrial units located in São Paulo, Bahia, and Rio Grande do Sul. The pricing structure for these deliveries is indexed to the international naphtha benchmark, ensuring alignment with global market dynamics. The agreements also establish minimum monthly supply volumes, while providing flexibility for the negotiation of additional quantities based on operational needs and market demand. If fully exercised, these optional volumes could raise total supply to approximately 4.116 million tons in 2026, increasing further to about 4.316 million tons by 2030. The total estimated value of these naphtha-linked contracts is around US$ 11.3 billion, covering a five-year period starting January 1, 2026.
In addition to naphtha-based supply, separate long-term agreements cover deliveries to Braskem facilities in Rio de Janeiro. These contracts are indexed to international natural gas and propane benchmarks, reflecting the diverse feedstock requirements of the petrochemical chain. Between 2026 and 2028, the supplier will maintain the current contracted volume of 580,000 tons per year of ethylene equivalent. This production will continue to be sourced from Reduc. From 2029 through 2036, annual volumes are set to increase to 725,000 tons, supporting Braskem’s planned capacity expansion. During this later phase, production may originate from Reduc and/or the Boaventura Complex. These gas and propane-linked agreements have an estimated total value of US$ 5.6 billion and span 11 years, also commencing on January 1, 2026.
Further reinforcing the commercial relationship, additional purchase and sale contracts have been concluded for propene supply from several refining assets. These agreements reference international propene benchmarks and cover deliveries from Recap, Reduc, and Refap. Under the terms, contracted volumes may reach up to 140,000 tons per year at Recap and 100,000 tons per year at Reduc, while Refap will supply staggered quantities over a five-year period. The combined estimated value of these propene-related contracts is approximately US$ 940 million, with operations scheduled to begin on May 18, 2026.
The company highlighted that all agreements qualify as Related Party Transactions and were executed under strictly commutative conditions. According to the statement, the contracts prioritize transparency, fairness, and the balanced interests of both companies, while remaining fully aligned with prevailing market conditions. The transactions were also reviewed by the Statutory Audit Committee (CAE), underscoring adherence to governance standards and internal oversight procedures.
Collectively, these multi-billion-dollar supply deals not only secure long-term feedstock availability for Brazil’s petrochemical sector but also demonstrate a structured, market-aligned approach to strengthening strategic industrial partnerships over the next decade and beyond.
