Chevron Australia's Long-Term Gas Supply Deal: A Boon for Both Companies

Chevron Australia has signed a significant long-term gas supply deal with Alcoa, a strategic move that benefits both companies in the energy and aluminium sectors. This agreement, effective from January 2028, provides a total of 130 petajoules (PJ) of gas over a 10-year period, securing a stable energy source for Alcoa's Western Australian alumina refineries and enhancing Chevron's revenue streams.



The deal enables Alcoa to maintain stable energy costs and enhance its operational efficiency. With Chevron supplying 130 petajoules of gas over 10 years, Alcoa's refineries, which are among the lowest carbon emitting globally, can continue to operate at optimal levels. The agreement aligns with Alcoa's long-term energy strategy, aiming to maintain global competitiveness while sustaining jobs and businesses in regional WA.



For Chevron Australia, the long-term gas supply deal with Alcoa is a strategic move that helps diversify its customer base and secure long-term revenue streams. By supplying natural gas to Alcoa's Western Australian alumina refineries, Chevron expands its customer portfolio beyond the residential and commercial sectors. This agreement, effective from 2028, provides Chevron with a stable, multi-year revenue stream, reducing its reliance on short-term market fluctuations.

The secure gas supply deal between Chevron Australia and Alcoa significantly impacts both companies' financial outlooks. For Chevron, the increased gas supply contributes to its revenue, with the Gorgon and Wheatstone facilities capable of producing 500 terajoules per day of domestic gas, enough to generate electricity for 4.3 million households. The multi-year term ensures stable revenue streams, enhancing Chevron's profit projections. For Alcoa, the agreement ensures its refineries remain globally competitive while sustaining thousands of direct and indirect jobs and businesses in regional WA. The use of natural gas as an energy source results in an average emissions intensity less than half of the global industry average, further enhancing Alcoa's sustainability profile.

In conclusion, Chevron Australia's long-term gas supply deal with Alcoa is a win-win situation for both companies. The agreement secures a stable energy source for Alcoa, enabling it to maintain stable energy costs and enhance operational efficiency. For Chevron, the deal helps diversify its customer base and secure long-term revenue streams, contributing to its revenue and profit projections. As both companies continue to focus on sustainability and global competitiveness, this strategic partnership is set to drive growth and success in the energy and aluminium sectors.