Alcoa secures three new gas supply contracts for Western Australia alumina refineries

Alcoa of Australia has reportedly acquired three new gas supply agreements. All three agreements, together, will supply close to 25 per cent of the company’s requirements in Western Australia from 2020.

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, the company said.

President of Alcoa Alumina and Managing Director of Alcoa, Australia, Michael Parker, said: “In securing these new gas contracts we are demonstrating to our employees, suppliers, customers and the communities where we operate our commitment to the state.”

He further said: “Alcoa’s three WA refineries are the largest integrated source of alumina globally and an important source of economic activity. They provide jobs for more than 3,000 Western Australians, primarily in the state’s south-west, and generate some A$1.4 billion ($1.01 billion) in expenditure with WA suppliers.”

Alcoa is the only largest user of natural gas in Western Australia. It consumes around 25 per cent of the state’s total domestic gas supply. 60 per cent of Alcoa of Australia is owned by Alcoa Corp and the rest 40 per cent by Alumina Limited. Alcoa operates two bauxite mines and three alumina refineries in Western Australia, and also hold 55 per cent share of the Portland aluminium smelter in Victoria. Each year the company mines around 36 Mt of bauxite, refines 9 Mt of alumina and produces 300,000 t of aluminium.