OSLO: Norwegian metals maker Norsk Hydro said on Friday it has struck a preliminary deal with New Fortress Energy to buy liquefied natural gas (LNG) for its Alunorte alumina refinery in Brazil, switching the energy source from fuel oil.

Supply of LNG by the US-based energy company to the Barcarena municipality is expected to start in 2022 under a 15-year deal, according to Hydro.

“The project is supporting Hydro’s climate strategy and its global commitment to reduce its greenhouse gas emissions by 30% by 2030,” the Oslo-based company said in a statement.

“The natural gas is expected to come from an LNG regasification terminal, which will be located near the Hydro Alunorte refinery in Barcarena,” it added.

The terminal will also give access to natural gas for other industries and consumers in the region. Finalisation of the LNG supply deal is subject to reaching commercial agreements and final documentation between the parties, Hydro said.