Alcoa’s Contribution to Energy Infrastructure
 
Alcoa of Australia has a long history of investing in and supporting energy infrastructure in Western Australia and Victoria. We are the single largest user of natural gas in Western Australia, consuming approximately 25 per cent of the state’s total domestic gas supply. Reducing the energy intensity of our operations is a major focus and in 2014, we achieved record low energy intensity for our refining system.
 
Western Australia - Dampier to Bunbury Natural Gas Pipeline
 
More than thirty years ago, Alcoa and the WA State Government partnered to underwrite a long term contract and the funding of the Dampier to Bunbury Natural Gas Pipeline to enable development of the North West Shelf gas project. This pipeline continues to deliver energy supplies to businesses and communities in the South West of WA.
 
The WA State Government sold the pipeline for $2.4 billion in 1998. In 2004, Alcoa and our consortium partners spent $1.9 billion to rescue the pipeline out of receivership in order to secure its expansion. The consortium spent a further $1.8 billion expanding the pipeline since May 2005. In August 2013, the pipeline had been duplicated approximately about 83 per cent of its length - this is a second pipeline running parallel to the existing asset.
 
In March 2016, Alcoa sold its 20 per cent stake in DBP, owner and operator of the Dampier to Bunbury Natural Gas Pipeline (DBNGP) for $205 million to DUET Group. Alcoa will maintain its current access to approximately 30 per cent of the DBNGP transmission capacity, securing critical long-term gas supply to its three refineries in Western Australia.
 
Victoria and South Australia - Natural Gas Supply
 
Just as Alcoa’s support of the development of the Dampier to Bunbury Gas Pipeline resulted in providing power to homes and businesses in Western Australia, Alcoa’s construction of the Portland Aluminium Smelter in the 1980s was used by the Victorian State Government as the basis for developing the Loy Yang complex, which brought a large number of jobs to regional Victoria. 
 
The creation of Portland Aluminium was also the catalyst for the construction of a high voltage line from Geelong to Portland and an interstate interconnector between Victoria and South Australia.  Connecting South Australia to the Victorian grid has enabled South Australians to access a more stable and reliable power supply. 
 
In addition, Portland Aluminium supported construction of a pipeline delivering natural gas to Portland and surrounding communities.
 
Energy Exploration and Development
 
Alcoa has committed more than $125 million with energy stakeholders in energy exploration and development. This includes a joint venture with Transerv Energy to develop the Warro Gas Field, located north of Perth and close to existing gas pipeline infrastructure.