Chevron's Gas Supply Agreement with Alcoa

(Reuters) – U.S. oil giant Chevron (NYSE:CVX)'s Australian unit announced that it would supply a total of 130 petajoules of gas to aluminium producer Alcoa (NYSE:AA) over a 10-year period starting in 2028.

The gas will be sourced from Chevron's Gorgon and Wheatstone facilities, as well as the North West Shelf Venture in Western Australia.

Alcoa stated that the gas would be utilized to power its alumina refineries in Western Australia. In 2020, Alcoa had secured gas supply deals with Chevron, Warrego Energy, and Exxon Mobil (NYSE:XOM) to power its Kwinana, Pinjarra, and Wagerup alumina refineries starting from 2024.

However, Alcoa announced in January that it would halt production at the Kwinana refinery due to challenging market conditions and the facility's aging infrastructure.

An Alcoa spokesperson mentioned that an unexpected gas disruption and subsequent power outage at the Pinjarra Alumina Refinery on Tuesday had affected process flow.

"Alcoa continues to restore refining operations at the site, and the cause of the disruption is being investigated," the spokesperson stated.