It is already known that alumina refining is one of the most energy-intensive processes, where a reliable and cost-effective fuel supply is quite important. It is important for maintaining production efficiency and operational continuity. In Western Australia, South32’s Worsley Alumina Refinery needs to secure a long-term natural gas supply as part of its energy transition strategy.
Shedding light on this, the firm entered into a new five-year agreement with Chevron Australia. The agreement, to be set from January 2028, will cover natural gas of 55 petajoules (PJ). The main aim of this project is to address the requirement as shared by the firm while supporting the refinery’s evolving energy needs.
Spotting the challenge
South32’s Worsley alumina refinery is dependent on a combination of natural gas, coal and biomass to meet the energy requirements. Moreover, the most energy-intensive process of the refinery is steam generation, requiring the availability and reliability of fuel, which has a direct influence on operating costs and the production process.
Another challenge that the firm faces in its refinery is the increased dependency on coal and simultaneously maintaining a consistent energy supply. Given this current situation and these challenges, South 32 has already converted five boilers to natural gas in two of its refineries. With this initiative, the company has been able to reduce annual operational emissions by nearly 10% against FY2021 levels.
But what seems to persist as a challenge is fuel switching, which requires dependable gas availability and careful consideration of regional energy infrastructure. This creates a bigger challenge for the company, where it needs to balance its decarbonisation objectives with production requirements, energy costs and the long-term competitiveness of its refining operations.
A solution for the refinery
A new long-term natural gas supply agreement with Chevron Australia with the aim of strengthening South32 Worsley Alumina’s energy supply arrangements. As per the agreement, for over five years, Chevron will supply 55 PJ of natural gas. The agreement is set to begin on January 1, 2028 and extends to the companies’ longstanding commercial relationship and secures a dedicated supply of fuel for Worsley’s alumina processing operations.
Chevron’s Western Australian portfolio includes its operated Gorgon and Wheatstone gas facilities, which collectively account for approximately 40% of the state’s domestic gas supply. This established supply infrastructure supports Chevron’s ability to serve industrial customers across the region.
The agreement further complements South32’s ongoing efforts to transition towards lower-emission energy sources. As an interim alternative to coal, natural gas is being used while the company continues to assess further boiler conversions and longer-term electrification opportunities.
From a solution to actual business impact
Worsley’s future energy requirements, this five-year supply agreement provides greater visibility and supports operational planning and fuel availability from 2028. Not only this, the agreement acts as a long-term energy partnership, supporting energy-intensive industries.
Securing the natural gas supply for South32 is a vital consideration for balancing production reliability with emissions reduction objectives. Although natural gas is not a zero-carbon fuel, its use in place of coal can support lower operational emissions, making fuel switching a practical interim measure as the refinery evaluates longer-term decarbonisation pathways.
Major takeaways for the aluminium refineries
The Chevron–South32 agreement highlights how long-term energy procurement can support the operational and strategic priorities of alumina refineries. Reliable fuel supply, infrastructure readiness and phased fuel switching remain important considerations for producers seeking to maintain competitiveness while progressing towards lower-emission operations.
Source: Chevron to supply 55 PJ of natural gas to South32’s Worsley Alumina Refinery from 2028