# Petrobras Signs $17.8bn Long-Term Supply Deals With Braskem Through 2036

*Agreements renew core feedstock supplies and are signed amid Novonor’s sale of control in Braskem to IG4 Capital, which represents creditor banks.*

- Published: 2025-12-18
- Updated: 2025-12-19
- Section: Insights
- Tags: blue chip, Braskem, Brazil energy, corporate governance, ethane, feedstock supply, Hydrogen, long-term contracts, naphtha, Petrochemicals, propane, propylene, refining, related-party transactions, tags com virgulas Petrobras
- URL: https://brazilstockguide.com/insights/petrobras-braskem-17-8bn-long-term-supply-deals-2036/

![](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/10/Braskem-Rio-de-janeiro-petrochemicals-chemicals-plastic-2.png?fit=1024%2C683&ssl=1)

**By Brazil Stock Guide – Petrobras (PETR4)** said it has signed new long-term commercial contracts with **Braskem S.A. (BRKM5)**, renewing and expanding a core supply relationship as existing agreements near expiration. The deals cover naphtha, ethane, propane, hydrogen and propylene, with terms starting in January 2026 and extending for as long as 11 years, for an estimated **$17.8 billion**.

**The agreements are being signed amid Novonor’s ongoing process to sell control of Braskem to IG4 Capital, which represents creditor banks**, adding commercial visibility during a shareholder transition that is still moving through regulatory and corporate steps.

The largest package involves **petrochemical naphtha** supplied to Braskem’s plants in **São Paulo, Bahia and Rio Grande do Sul**, priced against international naphtha benchmarks. The contracts set minimum monthly offtake with flexibility for additional volumes, allowing deliveries to reach **4.116 million metric tons in 2026** and **4.316 million tons by 2030**. The estimated value is **$11.3 billion**, with a **five-year** term beginning Jan. 1, 2026.

Another contract covers **ethane, propane and hydrogen** supplies to **Rio de Janeiro**, with prices linked to international natural gas and propane references. From **2026 to 2028**, volumes remain at **580,000 tons per year in ethylene equivalent**, produced and supplied from **Reduc**. From **2029 through 2036**, volumes rise to **725,000 tons per year** to support Braskem’s planned expansion, with production from **Reduc and/or the Boaventura Complex**. The estimated value is **$5.6 billion**, with an **11-year** term starting in 2026.

Petrobras also signed **propylene** supply contracts sourced from the **Reduc, Recap and Refap** refineries, priced off international propylene benchmarks. Volumes reach up to **140,000 tons per year at Recap**, **100,000 tons at Reduc**, and are ramped at **Refap** to **60,000 tons annually**. The estimated value is **$940 million**, with a **five-year** term starting in May 2026.

Petrobras said the transactions are classified as **Related-Party Transactions**, structured on **strictly arm’s-length terms** and aligned with market conditions, and were reviewed by the company’s **Statutory Audit Committee**. The contracts bolster revenue visibility for Petrobras’ refining and petrochemical operations while securing critical feedstocks for Braskem’s operations and expansion over the next decade.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/petrobras-braskem-17-8bn-long-term-supply-deals-2036/