Santos secures new Western Australian gas supply deal

Australian oil and gas major Santos has signed a new gas sales agreement with energy provider Kleenheat, a subsidiary of Western Australian corporate giant Wesfarmers Chemical, Energy and Fertilisers (WesCEF).

The deal will see Santos supply over 16 petajoules (PJ) of gas from its Varanus Island processing operations for three years, starting next year.

Santos managing director and CEO Kevin Gallagher said that the agreement further cements the company’s position in Western Australia as the supplier of clean, cost-efficient and reliable energy.

Gallagher added: “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 supplies approximately 45 per cent of the state’s domestic gas requirements and we are committed to investing in exploration and development of new domestic gas supplies to meet the energy needs of WA households and businesses for the long term.”

In June, Santos signed an agreement to supply gas to Gold Fields Limited’s mines for the next three years.

In the same month, Santos welcomed the New South Wales (NSW) government’s recommendation to approve its planning application for the Narrabri gas project in Australia.