Aluminum

The United States should be exporting more chemicals, glass, steel, aluminum and other products, but the country’s leaders should think long and hard before adding liquefied domestic natural gas to that list, a Dow Chemical executive said Wednesday. While end-user industries fear higher gas prices, producers are looking to all potential demand sources to lift gas prices and make their dry gas operations economic once again.

Kitimat, a coastal community in northwestern British Columbia (BC), which has its roots as a company town planned and built in the 1950s by the Aluminum Co. of Canada, is quickly becoming the company town for liquefied natural gas (LNG). Royal Dutch Shell plc on Thursday confirmed that it has purchased an marine import terminal there and now is exploring — with its Asian partners — its potential as an LNG export facility.

Kitimat, just in from the coast in northwestern British Columbia (BC), which has its roots as a company town planned and built in the 1950s by the Aluminum Co. of Canada, is quickly becoming the company town for liquefied natural gas (LNG). Royal Dutch Shell plc on Thursday confirmed that it has purchased an marine import terminal there and now is exploring — with its Asian partners — its potential as an LNG export facility.

Wheeling, WV-based Ormet Primary Aluminum Corp. has issued two requests for proposals, seeking up to 553 MW of power supply, up to 6.8 Bcf/year of gas supply and complete utilization of Ormet’s substantial demand-side resources and dynamic scheduling, which provides control area and ancillary services. The RFPs are for service starting Jan. 1, 2005. Proposals are due April 8. Ormet uses 542 MW of around-the-clock power at a 99% annual load factor at its Hannibal, OH, plant. It has the ability to reduce load by as much as 480 MW upon a 15-minute notice and is a self supplying customer not tied to a retail supplier. One of Ormet’s RFPs seeks proposals for all or a portion of its power supply and utilization of its demand-side resources. Demand-side proposals can be combined with or separate from the power supply proposals. The RFP also invites suppliers to submit offers for 6.8 Bcf/year of gas supply for its Burnside alumina plant located south of Baton Rouge, LA. In the second RFP, Ormet is soliciting dynamic scheduling to provide control area and ancillary services. The company said it would consider proposals separate from or in conjunction with the first RFP. For additional details, visit Ormet’s web site at www.ormet.com/rfp.

Melbourne, Australia-based BHP Billiton said last week that it is investing $100 million in two limited liability companies that will transport natural gas and oil from the group’s recently sanctioned Mad Dog development and its Atlantis discovery, both in the ultra-deepwater Gulf of Mexico (GOM). The company said the pipelines are part of a new system being built in the southern Green Canyon area that also will transport oil and gas from the BP-operated Holstein development and potentially other fields.

Melbourne, Australia-based BHP Billiton said earlier in the week that it is investing $100 million in two limited liability companies that will transport natural gas and oil from the group’s recently sanctioned Mad Dog development and its Atlantis discovery, both in the ultra-deepwater Gulf of Mexico (GOM). The company said the pipelines are part of a new system being built in the southern Green Canyon area that also will transport oil and gas from the BP-operated Holstein development and potentially other fields.

Utilicorp United’s Aquila Energy subsidiary was awarded afive-year contract to supply the power needs of Alcoa’s aluminumsmelting facility in Badin, NC. Under the contract, Kansas City,MO-based Aquila will provide risk management for both power and theimpact of weather on the energy production of Alcoa’s generatingunits. Aquila also will support the plant with the power it needsto operate its smelter 24-hours a day, seven days a week, throughthe optimizing of Aquila’s supply, Alcoa’s own generation, and themarket. “This agreement provides a stable and consistent powersupply for Alcoa’s base load energy demand, while effectivelymitigating the weather-related variability of its generatingcapacity,” said Tripp Dunman, senior director of IndustrialOrigination for Aquila.