Alcoa secures gas supply for alumina refineries

Alcoa of Australia (ASX: AAI) has inked a new gas supply agreement with Chevron Australia for its WA alumina refineries.

Effective January 1, 2028, the agreement will provide a total of 130PJ of gas over a 10-year period.

Alcoa Australia president Elsabe Muller says the new contract plays an important role in securing the future of Alcoa’s WA operations and continues its association with one of the state’s longstanding domestic gas suppliers.

“This agreement with Chevron forms part of our long-term energy strategy focussed on ensuring our refineries remain globally competitive whilst sustaining thousands of direct and indirect jobs and businesses in regional WA,” she said.

Alcoa directly employs more than 4000 people in WA, with around 60% living in the Peel and South West regions. In 2023, the company invested $1.9b with WA suppliers and provided $4.6m in support to local community organisations.

With the energy requirements of Alcoa’s WA refineries underpinned by natural gas, they are among the lowest carbon emitting in the world with average emissions intensity (direct and indirect) less than half the global industry average, according to Alcoa.

Alumina produced at the refineries is used to manufacture aluminium, a future facing metal key to the global energy transition and used in everyday life in a range of applications from medical equipment to food and beverage packaging, transportation, aviation and building and construction.