Alcoa Inks Three Oz Gas Supply Deals
Alcoa of Australia has secured three new gas supply agreements which combined will supply approximately 25% of its gas requirement in Western Australia from 2020, it said December 12 without disclosing the length of the three contracts.
The agreements with BHP, Woodside and Chevron coupled with other gas supply contracts, including with Quadrant Energy and Santos, announced in 2015, complete Alcoa’s gas portfolio to fuel its Kwinana, Pinjarra and Wagerup alumina refineries for the mid-term, it said. Last month, Santos completed the US$2.15bn acquisition of Quadrant.
Woodside in a separate statement issued December 12 said it will supply up to 36.4 petajoules (0.98bn m3) of pipeline gas over the term of the agreement. Supply will commence in 2020 from Woodside’s portfolio of domestic gas facilities, including the North West Shelf, Pluto and Wheatstone. Woodside did not provide any details about the value and the length of the contract.
Chevron said December 12 it will supply a total of 64 petajoules (1.7bn m3) of gas from its domestic gas portfolio across the Wheatstone, Gorgon and North West Shelf facilities. BHP did not release any details of its contract.
Alcoa is Western Australia's single largest user of natural gas, consuming approximately 40% of the gas supplied to the south west of the state and about 25% of the state's total domestic gas supply.