Alunorte Faces $210 Million Hit Due to Gas Supply Disruptions

Hydro’s Alunorte alumina refinery in Brazil has slashed production to 50% due to disruptions in its natural gas supply from CELBA. The refinery, which is facing shortages, has had to purchase gas at higher spot market prices since August 2026, when CELBA informed Alunorte of the supply issues. Hydro estimates that the disruption could cost its Bauxite & Alumina business up to USD 100 million in the third quarter of 2026 and an additional USD 110 million in the fourth quarter due to elevated gas costs.

Alunorte has requested direct access to the Barcarena LNG receiving and regasification terminal to mitigate the supply constraints. The refinery plans to resume full production once gas supplies stabilize. Hydro does not anticipate further disruptions beyond the current situation. CELBA is seeking gas supply options that align with its financial position while Alunorte explores long-term gas supply agreements.

In the meantime, Alunorte is taking legal steps to protect its rights under the existing gas supply agreement. The final financial impact will depend on gas price fluctuations and the outcome of ongoing contract negotiations. The refinery remains focused on securing alternative gas supplies while navigating the current challenges.