Alcoa locks in BHP, Chevron and Woodside gas deals

Image: Alcoa.

Alcoa has secured gas supply agreements with three leading producers that will cover 25 per cent of its requirements in Western Australia from 2020.

The agreements with BHP, Woodside Petroleum and Chevron, along with the contracts signed with Quadrant Energy and Santos in 2015, complete Alcoa’s mid-term gas portfolio to fuel its Kwinana, Pinjarra and Wagerup alumina refineries.

Alcoa of Australia managing director Michael Parker said the company was demonstrating its commitment to Western Australia by securing the contracts.

“Alcoa’s three WA refineries are the largest integrated source of alumina globally and an important source of economic activity,” Parker said.

“They provide jobs for more than 3000 Western Australians, primarily in the state’s south west, and generate some $1.4 billion in expenditure with WA suppliers.”

Santos, which now owns Quadrant Energy, secured a deal in March 2015 to supply Alcoa with 82 petajoules of gas over an initial five-year period from this year. The deal included two five-year extension options.

Alcoa’s deal with Quadrant, also starting in 2020, involved an initial supply of 120 terajoules per day of natural gas.

According to Alcoa, the company consumes approximately 40 per cent of the gas supplied to Western Australia’s south west, and about 25 per cent of the state’s total domestic gas supply.