Alba: Gas prices hit $2.50 per MMBTU

Aluminium Bahrain B.S.C. (Alba) has 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 US$ 2.25 per million British thermal units (MMBTU) to US$2.50 per MMBTU effective 1 April 2015. Thereafter, the gas price will escalate at US$.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. For calendar year of 2015, the cost impact will be approximately US$22 million for nine months.