Brazil alumina refinery procures spot LNG amid supply dispute

Alunorte, operator of an alumina refinery in Barcarena, Brazil, has directly procured a spot LNG cargo due to natural gas supply constraints affecting operations, multiple market sources said Aug. 13.

Alunorte's owner Hydro said Aug. 11 that it had reduced alumina production at the refinery by half after being notified of disruptions to natural gas availability by its supplier. The company said it would implement contingency measures to maintain operational stability, including directly procuring spot LNG deliveries and requesting direct access to the Barcarena LNG receiving and regasification terminal.

Alunorte procured the cargo from a European major that has previously supplied volumes to New Fortress for the terminal, two sources said.

The cargo is being delivered on the LNG carrier Maran Gas Vergina using third-party access to the terminal, one of the sources said.

A spokesperson for Hydro told Platts, part of S&P Global Energy, in a written response Aug. 13 that the mitigation measures have been initiated but declined to comment on details.

The spokesperson referred to another statement Hydro posted on its website Aug. 13, which said Hydro had reached an agreement with CELBA regarding temporary terminal access, while pursuing a long-term solution.

The refinery is currently the only customer of the Barcarena LNG import terminal, also known as CELBA, which is operated by New Fortress Energy. New Fortress has typically procured cargoes imported to the terminal, supplying the volumes to Alunorte under a 15-year contract that became effective in March 2024.

According to Hydro, CELBA said it is seeking to secure natural gas supply for Alunorte on market terms compatible with its current financial situation.

New Fortress Energy did not immediately respond to a request for comment on Hydro's statement or the potential delivery of a Hydro-imported cargo to the terminal.

Alunorte is the world's largest alumina refinery outside China and has a valid permit from Brazil's oil and gas regulator ANP to import LNG to Barcarena.

"A supplier not performing its gas or LNG contract obligations is not good for the market," a Brazil-based source said.

The Barcarena terminal is isolated from the national gas grid, so LNG imports are its only source of supply, sources previously said.

New Fortress reportedly wanted to charge Alunorte a "high" fee to import its own cargo to the terminal, the Brazil-based source said.

The Barcarena terminal has imported 430,000 mt of LNG so far this year, including 110,000 mt in August, data from S&P Global Energy CERA showed Aug. 13.

The August volumes were delivered on two cargoes: one of around 70,000 mt on the Maran Gas Vergina Aug. 12 and another delivered by the HL Edward Austin Aug. 9.

The HL Edward Austin was originally going to deliver the cargo to Argentina, but was diverted to Brazil after Argentine state-run LNG importer Enarsa cancelled the cargo due to weakening local natural gas demand, several sources said, including some familiar with the situation.

Petrobras sold the cargo to New Fortress following a cancellation. Petrochina had previously secured that cargo from Petrobras to deliver a cargo Enarsa awarded via tender.

Neither Petrobras, Petrochina nor Enarsa immediately responded to a request for confirmation on the matter.

Alunorte initiated international arbitration proceedings against New Fortress in 2025, the US-based company said in a June 2026 filing with the US Securities and Exchange Commission. Alunorte claims it is owed damages for alleged gas supply delays, which New Fortress said have no merit, based on the filing.

New Fortress announced in March that it would spin off its Brazil operations into an independent company as part of its recapitalization efforts.

Platts assessed its DES Brazil price for cargoes delivered 15-45 days forward at $20.335/MMBtu Aug. 13.