Norsk Hydro's Alunorte ramps up production after gas supply deal

Norsk Hydro announced on Thursday that its Alunorte alumina refinery in Brazil has begun ramping up production to full capacity following a temporary agreement with its natural gas supplier.

The refinery, located in the northern state of Pará, had reduced output to 50% of its 6.3-million-tonne-per-year capacity earlier this week after supplier CELBA notified the company of disruptions in gas availability.

Hydro estimates the production loss from the curtailment at between 100,000 and 120,000 tonnes. The company added that Alunorte has now reached an agreement with CELBA regarding temporary terminal access, enabling the resumption of normal operations.

Looking beyond the immediate fix, Hydro has recently secured approval from Brazil's oil regulator to become a self-importer of gas. The company said it is actively pursuing a long-term solution to ensure supply stability for the refinery moving forward.