Chevron Signs 10-Year Gas Deal with Alcoa

Chevron has entered a 10-year agreement to supply Alcoa with 130 petajoules of natural gas starting in 2028, sourced from its Gorgon and Wheatstone LNG projects in Western Australia. This gas will support Alcoa's alumina refineries in the region, which have faced operational challenges, including a recent power outage at the Pinjarra site. Alcoa has previously secured similar deals with Chevron, Exxon, and Warrego Energy to supply gas to its refineries beginning in 2024. Chevron's investment in Western Australia reflects a broader strategy to bolster natural gas operations amid rising energy demands, particularly from emerging data centers linked to artificial intelligence. The deal is part of a trend of increasing aluminum demand driven by the energy transition, as noted by Alcoa's CEO. Chevron's ongoing investments aim to ensure a reliable energy supply for the region's industrial needs.