alcoa article

Saw this on another thread..
From Macquarie Edge article...

There is talk out there in WA gas land that Alcoa has signed a new 10-year supply contract for 50 terajoules a day, with the North West Shelf mooted as the likely seller.

The aluminium giant is the State's biggest gas user so not surprisingly it is on the lookout for more gas to meet increased requirements.

But if the talk of a new long-term contract at current market prices is correct, it would undermine Alcoa's continuing campaign, through the DomGas Alliance, to complain about a lack of new available gas supplies in this State at acceptable prices. WA's gas producers, Alcoa and DomGas have long argued, are refusing to produce more gas for the local market and keeping prices unreasonably high, at two to three times the levels gas customers on the eastern seaboard have to endure.

Woodside, the operator of the North West Shelf, hasn't been talking during what has been a rather busy week with Browse project milestones and chief appointments.

Alcoa, meanwhile, has denied it has recently finalised any long-term gas contracts but admitted it remained on the lookout for opportunistic supply deals.

Recent market prices for gas are not sustainable in the long term for any value-add mineral processing industries, including alumina refining, Alcoa told the Bull.

Alcoa would see new supply contacts negotiated under current market conditions as a bridging step only.

This does not look good imo