Oil prices reduce Alba Line 6 costs by $500m
Alba's Line 6 Expansion project will now require a capital expenditure (capex) of $3bn
Aluminium Bahrain (Alba) said the global drop in oil prices has reduce the projected capital cost of its Line 6 expansion by $500m (BHD188.7m).
Line 6 Expansion will now cost $3bn (BHD1.13bn).
Upon completion, the project is expected to boost Alba's annual output by 540,000 tonnes to 1.5 million tonnes a year with "first hot metal" due to flow in early January 2019.
"Following our ongoing review in response to the lower oil prices and the commodity market's soft conditions, the capex has significantly shrunk to approximately $3bn," a statement by the company said.
The firm also said it was continuing to explore different possibilities for the structuring and financing of the project.
Tim Murray, Alba's CEO, said in the statement: "We are pleased to arrive at a lower capex as that will reduce the debt burden when financing the construction of the sixth pot line and Power Station 5."