Bauxite producer and alumina refiner Alcoa of Australia has signed long term gas sales agreements with Warrego Energy which is developing the West Erregulla gas field in Western Australia.
Alcoa, which operates three alumina refineries in the state’s south-west, has contracted for 155 Pj of gas with supply to commence in 2024.
The contract is subject to Warrego making a final decision to invest in the field.
Warrego said the contract was of sufficient size to support a decision to invest in gas processing facilities, however it will continue to talk to other prospective customers for its gas.
West Erregulla is an onshore field and thus under the control of the WA government, which has a policy reserving a portion of gas for domestic customers.
The state’s larger offshore fields are managed by the Commonwealth and are not reserved.
Warrego’s Group CEO Dennis Donald said: “Securing such a large scale and long term (contract) with a top tier customer like Alcoa is testament to the quality of the West Erregulla gas field…and will send a positive signal to other gas buyers.
“We are well advanced in progressing gas processing options…with a view to selecting our preferred option later this year.”
Alcoa operates three alumina refineries at Kwinana, Pinjarra and Wagerup in Western Australia.
Picture: Alcoa//Kwinana alumina refinery
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