Norwegian aluminium company Norsk Hydro signed agreements with the state of Pará and Shell Brasil Petróleo, aiming to replace fuel oil with natural gas at its Alunorte alumina refinery in Brazil.
Under its letter of intent signed with the Pará government, aims to develop infrastructure and enable the use of natural gas in the region.
Hydro Alunorte would be the first consumer of gas, and an enabler for establishing new LNG infrastructure in Pará, according to the company.
The company’s memorandum of understanding signed with Shell, outlines terms for delivery of LNG and the establishment of necessary infrastructure close to the Alunorte plant.
Under the MoU, a detailed feasibility study, to assess the technical and economic viability of the project, will be conducted before other agreements with Shell can be signed.
Alunorte refinery consumes fuel oil for the calcination process and for part of the steam generation, since natural gas has not been an option in Pará due to lack of infrastructure.