Australian producers sign gas sales agreements with Alcoa

Oct. 5, 2020
Chevron Australia, ExxonMobil, and Warrego Energy signed agreements with Alcoa for supply of natural gas to its alumina refineries in Western Australia.

Chevron Australia, ExxonMobil, and Warrego Energy signed agreements with Alcoa for supply of natural gas to its alumina refineries in Western Australia.

Chevron will deliver gas from its Western Australian portfolio which includes Wheatstone, Gorgon-Jansz, and the North West Shelf projects beginning in January 2024.

The deal involves 37 petajoules of domestic gas over a 10-year term and adds to an existing agreement signed by Chevron and Alcoa in December 2018 for the supply of 64 petajoules of domestic gas.

Warrego, a 50% interest holder in West Erregulla gas field in the onshore North Perth basin, will supply 155 petajoules of gas from the field from January 2024 subject to a final investment decision on the project development expected in first-half 2021.

Strike Energy, Warrego’s West Erregulla partner, has already signed a 100 petajoule supply deal over 11 years with Wesfarmers beginning in second-half 2022, subject to FID.

A smaller ExxonMobil agreement is attached to the Chevron-operated Gorgon-Jansz project in which ExxonMobil is a joint venture partner.

Overall, the new Alcoa agreements lock in a total gas supply of 198 petajoules for its Kwinana, Pinjarra, and Wagerup alumina refineries.