Santos Signs West Oz Gas Deal

Santos has signed a new gas sales agreement to supply natural gas to Western Australian (WA) energy solutions provider, Kleenheat, it said on November 4 in a statement.

Under the contract, Santos will supply more than 16 petajoules of gas from its Varanus Island processing operations over three years from 2021. Gas, condensate and oil from the offshore John Brookes, Harriet and Spar-Halyard fields is piped to the Santos-operated Varanus Island processing facility. The sales gas is then transported to mainland WA via two 100-km pipelines, where it is supplied to major mining and industrial customers.

"In these challenging economic times, this agreement with one of Western Australia's largest users of natural gas is good for Kleenheat, good for Santos and good for WA, supporting local jobs and business opportunities, and demonstrating our confidence in WA's future," Santos CEO Kevin Gallagher said.

Gallagher added that Santos is committed to investing in the exploration and development of new domestic gas supplies to meet the energy needs of WA households and businesses for the long term.