Chevron Australia has signed a long-term gas supply agreement with aluminum producer Alcoa. Under the terms of the deal, Chevron’s Australian unit will deliver a total of 130 petajoules of gas to Alcoa over a 10-year period, commencing in 2028.
The gas will be supplied form Chevron’s 530 terajoules-a-day Gorgon and Wheatstone facilities, and Northwest Shelf Venture in Western Australia, Chevron Australia said on Tuesday.
Alcoa plans to utilize the gas to power its alumina refineries in Western Australia.
In 2020, Alcoa secured gas supply deals with Chevron. The aluminum company also entered into agreements with Chevron, Warrego Energy, and Exxon Mobil to ensure gas supply for its Kwinana, Pinjarra, and Wagerup alumina refineries starting in 2024.
However, Alcoa announced in January that it would cease production at the Kwinana refinery due to challenging market conditions and the facility’s age.
According to Reuters, an unexpected gas disruption and subsequent power outage at Alcoa’s Pinjarra Alumina Refinery on Tuesday impacted operations.
Alcoa is currently working to restore refining operations at the site, and the cause of the disruption is under investigation.