Santos agreed on key terms with the South Australian government for the long-term supply of gas to support the state’s plan to green major manufacturing industries. The agreement covers 200 petajoules (about 5.3 billion cubic metres) of gas over 10 years and is intended to support the transformation of the Whyalla Steelworks into a low-emissions green iron facility, subject to conditions.

Santos will supply 20 PJ per year, around 30% of its current Cooper basin production, delivered ex-Moomba. The contract is scheduled to begin on 1 March 2030, aligning with the expiry of its Horizon contract with the GLNG joint venture.

Santos said the gas would enable Whyalla to deploy direct reduced iron technology to process local magnetite ore, cutting emissions by about 50% compared with former coal-fired blast furnace operations.

The agreement follows a Conditional Ministerial Exemption under the Gas Market Code. Santos said the contract structure would support infrastructure investment and optimisation projects, while industry body Australian Energy Producers said natural gas remains critical for manufacturing and emissions reduction.