Norway's Norsk Hydro sees up to $210m hit from gas supply disruption at Alunorte
Norsk Hydro said on Monday it could take a financial hit of up to $210-million as it continues to buy gas at spot-market prices following disruptions to natural gas deliveries at its Alunorte refinery in Brazil.
The Norwegian company estimates a $75-million to $100-million impact to its bauxite and alumina business in the third quarter owing to lower production and purchase of gas above contracted prices.
It expects a further $90-million to $110-million hit in the fourth quarter from gas arbitrage costs at Alunorte.
Hydro said gas supplier CELBA notified Alunorte in August that gas availability had been disrupted. Since then, the refinery has not received its contracted volumes and has been buying gas at spot prices.
Alunorte had begun ramping up alumina production to full capacity after reaching a temporary agreement with CELBA in August. The refinery, in Brazil's northern state of Para, had cut output to 50% of capacity earlier that month owing to disruptions.
Alunorte does not expect further supply interruptions stemming from the current situation, and is working closely with CELBA, Hydro said.
The ultimate financial impact remains uncertain and will depend on gas prices, contractual developments and progress toward a long-term solution, the company added.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation


















