Energy companies secure gas supply contracts with Alcoa

Energy companies Chevron, Woodside Energy and BHP have signed separate agreements to supply gas to Australian aluminium firm Alcoa.

The three firms will begin delivering gas supplies in 2020. Alcoa will use the gas to fuel its Kwinana, Pinjarra and Wagerup alumina refineries in Western Australia (WA) for the mid-term.

Under the terms of the agreement, Chevron will supply a total of 64PJ of equity domestic gas from the Wheatstone, Gorgon and North West Shelf facilities in WA.

Gorgon’s domestic gas supplies into the WA market commenced in 2016 while the Wheatstone project is expected to start domestic gas sales early next year. Chevron noted that the Gorgon and Wheatstone will have the capacity to contribute 50% of the state’s current domestic gas supply.

Woodside’s agreement with Alcoa entails supply of up to 36.4PJ of pipeline gas from the North West Shelf, Pluto and Wheatstone projects.

Woodside Energy CEO Peter Coleman said: “Alcoa is Western Australia’s largest user of natural gas and its three alumina refineries provide jobs and opportunities for thousands of people and businesses in the state’s south-west.

“This agreement is not only testament to the competitiveness of Woodside’s domestic gas supply portfolio, but to the commitment and contribution that both companies are making to the local communities where they operate.”

The volume of gas BHP has agreed to supply to Alcoa remains undisclosed.

According to Alcoa, the gas supplied under the three contracts will account for around 25% of the company’s gas needs in WA.

The latest agreements come after the company secured gas supply contracts with Quadrant Energy and Santos in 2015.