MANAMA: Alba’s production costs to go up $22million in the remaining nine months of 2015, thanks to Bapco for increasing US$.25 cents per MMBTU effective April, 1st 2015.
Alba, one of the largest and modern aluminium smelters in the world, confirmed that for calendar year of 2015, the cost impact will be approximately $22 million for nine months.
The smelter said that on Friday said that it had been notified by the Bahrain Petroleum Company (Bapco) that the National Oil and Gas Authority of Bahrain (NOGA) has issued a directive to increase natural gas prices from $ 2.25 per million British thermal units (MMBTU) to US$2.50 per MMBTU effective 1 April 2015.
Thereafter, it added, the gas price will escalate at US$.25 cents per MMBTU per year effective 1st April of each year until the price reaches US$ 4.00 per MMBTU on 1 April 2021.
Alba’s current annual metal production is over 931,000 mt which consumes approximately 375 Million Standard Cubic Feet (MMSCF) of natural gas per day. At this current consumption rate, the estimated annual impact for a US$.25 cents increase is approximately US$30 million.
Alba is renowned for its premium grade aluminium products, technological strength and innovative policies, strict environmental guidelines and high track record for safety. Established in 1971 as a 120,000 tonnes per annum smelter, Alba today produces more than 931,000 metric tonnes per annum of the highest grade aluminium, with products including standard and T-ingots, extrusion billets, rolling slab, properzi ingots, and molten aluminium.
Alba is listed on both the Bahrain Bourse and London Stock Exchange, and the company’s shareholders are Bahrain Mumtalakat Holding Company (69.38%), SABIC Industrial Investment Company (20.62%) and the General Public (10%).