Alunorte halves alumina production amid natural gas supply shortage

Norsk Hydro ASA has announced that its majority-owned alumina refinery, Alunorte, has cut alumina production to 50% due to disruptions in its natural gas supply. The reduction comes as the refinery grapples with a shortage of gas, which is crucial for its operations.

This situation arises from a communication received from CELBA, a supplier that is part of New Fortress Energy Inc., indicating challenges in delivering natural gas. The timing of this disruption is significant as it coincides with a period when global energy supplies are under pressure, impacting various industries. Norsk Hydro has stated that the financial consequences of this reduction are still unclear, but estimates suggest a potential impact of $75 to $100 million for the Bauxite & Alumina segment in the third quarter of 2026.

In response to the crisis, Alunorte has implemented several contingency measures. These include purchasing spot gas to mitigate the impacts of the shortage and ensure operations continue as smoothly as possible. The company is focused on returning to full production capacity as soon as natural gas availability stabilizes.

The implications of this reduction extend beyond the refinery itself. A sustained decrease in alumina production could exacerbate supply issues in the aluminum market, affecting prices and availability. As the situation develops, stakeholders will be closely monitoring both the gas supply and the refinery's operational capacity.