Norsk Hydro restarts Alunorte output after gas deal, expects $75 to 100 million Q3 hit

Norsk Hydro has started increasing alumina production at its Alunorte refinery in Brazil after reaching a temporary agreement with gas supplier CELBA on terminal access. The restart follows approval from Brazil's oil, natural gas and biofuels regulator (ANP), allowing the company to become a self-importer of natural gas.

Alunorte had temporarily reduced alumina production after CELBA notified the refinery of disruptions to natural gas availability. According to Norsk Hydro, the agreement provides temporary access to gas infrastructure while the company continues to work on a longer-term solution with the supplier.

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With the agreement in place, the refinery is now ramping production back to full capacity. Norsk Hydro estimates that reduced operations resulted in the loss of 100,000 to 120,000 tonnes of alumina during the disruption.

The company also said the reduced production, together with the need to purchase natural gas at prices above its contract rate, is expected to have a USD 75 million to USD 100 million financial impact on its Bauxite & Alumina business during the third quarter of 2026.

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Furthermore, the restart reduced concerns over raw material availability, putting pressure on aluminium prices. Indian aluminium stocks also weakened as expectations of tighter alumina supply eased.