Oil and Gas News

Alcoa secures WA gas trio for supply agreements

Alcoa of Australia has executed a gas sales agreement (GSA) with Chevron Australia, Warrego Energy and ExxonMobil for the supply of natural gas to its Western Australian alumina refineries.

Chevron has agreed to deliver natural gas from its leading Western Australian portfolio across the Wheatstone, Gorgon and North West Shelf facilities.

Set to begin in January 2024, Chevron will supply Alcoa with an additional 37 petajoules (PJ) of domestic gas over a multi-year term, further to an existing agreement signed by the two companies in December 2018 for the supply of 64 PJ of domestic gas.

Chevron managing director Al Williams said the agreement highlighted the company’s ongoing commitment to Western Australia.

“As a leading domestic gas supplier, Chevron Australia is committed to delivering affordable, reliable and cleaner-burning energy to homes, businesses and industrial customers across the state,” Williams said.

Warrego will supply 155 PJ of natural gas from its West Erregulla gas field from January 2024, subject to a positive final investment decision on the project in the first half of 2021.

Due to the size and term of the foundation GSA with Alcoa, Warrego intends to expands its gas sale portfolio and continues to negotiate with other potential customers.

Warrego managing director and chief executive officer Dennis Donald said: “Securing such a large scale and long term GSA with top-tier customer like Alcoa is testament to the quality of the West Erregulla gas field and the commercialisation strategy adopted by Warrego, and will send a positive signal to other potential buyers.”

Warrego executive director and CEO Australia David Biggs added that the company was also looking forward to the results from the West Erregulla 3 well, which is currently being drilled on the northern area of the field.

“At least one further well (WE-5), with the possibility of another (WE-5), is slated to be drilled in the field over the next 12 months,” Biggs said.

The agreement with the three gas companies will together supply 198 PJ of gas to Alcoa’s Western Australia alumina refineries.

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