Norsk Hydro's (NHY.OL) Alunorte alumina refinery in Para, Brazil, started ramping up production following a period of slowdown due to disruptions in access to natural gas.
The Norwegian renewable energy group said Thursday that the development followed a temporary agreement with gas supplier Centrais Elétricas Barcarena regarding terminal access, as Alunorte received approval from Brazil's oil, natural gas and biofuels regulator ANP to be a self-importer of gas.
Norsk Hydro warned of a financial impact in the $75 million to $100 million range from the reduced production and higher-than-contract-price purchase of gas, which will be booked for the third quarter. During its slowdown period, estimated lost production at the refinery was between 100,000 tonnes and 120,000 tonnes of alumina.