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Securing our energy future

Alcoa is securing its future by contributing more than $100 million into sourcing natural gas supplies to run its Western Australia operations.


In June this year, Alcoa celebrated the first flow of gas from the Red Gully gas plant through the Dampier to Bunbury pipeline to Alcoa’s three refineries.


The $25 million commitment to gas from the Red Gully Gas Plant, operated by Empire Oil and Gas, will see at least three per cent of the company’s daily gas requirement supplied with the potential for this number to increase as exploration continues. Although this is only a small percentage of business requirements it demonstrates how Alcoa can use its status as a large domestic gas customer to support Western Australia’s energy infrastructure. 


Red Gully is the first integrated condensate and gas processing plant in the Perth Basin. In addition to current operations, Empire has identified further exploration plans aimed at increasing reserves and expanding their market position. 


Alcoa has also established relationships with Buru Energy and the Warro project with their partner, Transerv Energy (previously Latent Petroleum).


Alcoa’s relationship with Buru began in 2007 when, in an agreement with ARC Energy, they pre-paid $40 million to support their gas exploration program in the Canning Basin. This agreement transferred to Buru Energy following its demerger from ARC Energy in August 2008.


The business’s relationship with Warro began in 2008 when it commenced a joint venture with Latent Petroleum (now Transerv Energy) for the appraisal and development of the Warro tight gas field in the Perth Basin. If successful this will be Western Australia’s first commercial tight gas field.


Alcoa Energy Development Manager Mike Shaw said Alcoa was taking a portfolio approach in order to secure long-term supplies and at a cost which ensured it remained internationally competitive.


“This outcome will result in more sources of supply; some of these Alcoa will either own or some we will be directly responsible for developing,” Mike said.


“This is an exciting time to be in the market, with new unconventional gas supplies being developed either close to Alcoa’s operations in the Perth Basin or much further north in the Canning Basin.


“Alcoa’s future is reliant on energy security and we are committed to continually explore and develop competitively priced energy sources.”


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Click image to enlarge.

Aerial photo of Red Gully Gas Plant