Major alumina refinery experiences gas supply interruption; production temporarily cut by 50%

Global aluminum leader Norsk Hydro announced that its Alunorte alumina refinery has been affected by a natural gas supply interruption, temporarily reducing alumina production capacity to 50% of its design level, and the event may cause significant financial pressure on the company's related business in the third quarter.

According to information disclosed by Hydro, the Alunorte alumina plant received a notification from natural gas supplier CELBA that the natural gas supply to the plant area was interrupted. To adapt to the current gas supply status, the factory initiated an emergency production plan and reduced alumina output.

Hydro stated that after natural gas supply returns to normal, Alunorte will quickly organize a production ramp-up to resume full-load operations as soon as possible.

Public information shows that the Alunorte alumina refinery is located in Barcarena, Pará, Brazil. According to data from Hydro's 2025 annual report, the plant is a leading alumina production base globally, with a designed annual production capacity of 6.3 million tons, occupying an important position in the global alumina supply system.

Hydro further assessed the operational impact of this production cut.

On one hand, the contraction in production scale will directly reduce product output.

On the other hand, the factory needs to purchase natural gas in the spot market to supplement demand, where spot purchase prices are higher than long-term gas supply contract prices.

Under the combined effect of these dual factors, the company estimates that the potential loss range for the bauxite and alumina business segment in the third quarter of 2026 will be between $75 million and $100 million.

To mitigate the impact of the supply interruption, Alunorte has simultaneously implemented multiple emergency measures, including purchasing natural gas in the spot market and applying for access to the local Barcarena LNG receiving and regasification terminal. Meanwhile, gas supplier CELBA is coordinating gas supply guarantees, and Alunorte is also continuously seeking long-term alternative natural gas supply solutions while preserving relevant rights and interests under the gas supply agreement.

As alumina is a core raw material for electrolytic aluminum production, the sudden production cut at this large overseas alumina facility has attracted attention in the global non-ferrous metals market. Market analysts stated that this halving of capacity is a temporary event, and the magnitude of subsequent price impacts depends primarily on the recovery cycle of the natural gas supply.