Refile: UPDATE 1-Norsk Hydro's Alunorte ramps up production after deal with gas supplier

Norsk Hydro ASA

13/08/2026 20:46

 (Corrects typo in company name in headline)
    Aug 13 (Reuters) - Norsk Hydro's  NHY.OL  Alunorte refinery
in Brazil has started ramping up alumina production to full
capacity after reaching a temporary agreement with its gas
supplier, the Norwegian company said on Thursday.
    The refinery, located in Brazil's northern state of Para,
had reduced output to 50% of capacity earlier this week after
gas supplier CELBA informed about disruptions in availability.
It has the capacity to produce 6.3 million metric tons of
alumina per year.
    The cut exacerbated concerns over global aluminium supplies
already strained by constricted Middle East shipments and low
inventories in LME warehouses, driving prices to their highest
in seven weeks.
    The production loss is estimated to be 100,000 to 120,000
tonnes, Hydro said, adding that Alunorte has reached an
agreement with CELBA regarding temporary terminal access.
    The company has also recently received approval from
Brazil's oil regulator to become a self-importer of gas and is
pursuing a long-term solution for its gas supply, it said.
    The Iran war has caused gas prices to spike, while efforts
to reopen the Strait of Hormuz, which carried a fifth of global
oil and liquefied natural gas shipments before its access was
blocked, remain complicated.
    The reduced production and purchasing gas above the contract
price would result in a potential financial impact of $75
million to $100 million, Hydro said.​

 (Reporting by Abu Sultan in Bengaluru and Kanjyik Ghosh in
Barcelona; Editing by Shilpi Majumdar)
 ((Abu.Sultan@thomsonreuters.com;))