Santos has signed a long-term gas supply contract with the South Australian government, under which the producer will commit 20PJ of gas per year for a 10-year period.

The deal will help support the transformation of the Whyalla Steelworks into a low-emissions green iron facility, and will strengthen the long-term future of the Moomba Central Area of the Cooper Basin in South Australia, operated by Santos.

Key features of the transaction are:

• 10-year term for 20PJ of gas per year

• Delivered ex-Moomba

• Indexed pricing with prepayment structure, consistent with industry norms

• First gas 1 March 2030 coinciding with expiry of Santos’ Horizon contract with the GLNG joint venture.

Santos CEO Kevin Gallagher said the company is an important corporate citizen of Adelaide and South Australia.

“This agreement secures jobs here in Adelaide and the Cooper Basin for at least the next 15 years,” he said. “With this agreement, Santos is also proud to be playing an important role in South Australia’s broader economic future by supporting the government’s plan for sale and transformation of the Whyalla Steelworks.

“Santos gas will be used to enable Whyalla to deploy direct reduced iron technology that can process local magnetite ore to produce low-carbon iron. This will keep jobs in Whyalla and the Cooper Basin, and reduce emissions by approximately 50 per cent compared to the former coal-fired blast furnace operations.”