A 200 PJ contract will strengthen domestic gas supply, drive new investment in the Cooper Basin, and support the Australian state’s energy security over the next decade.
Energy producer Santos signed the Gas Sales Agreement (GSA) with the Government of South Australia to supply 200 petajoules (PJ) of domestic gas over a ten-year period. The contract will be in effect between 2030 and 2040 and is part of the state strategy to strengthen the Strategic Gas Reserve and secure supply for local industry.
Likewise, the agreement consolidates the terms previously announced between both parties and establishes an annual supply of 20 PJ, with deliveries from the Moomba facilities. The arrangement includes indexed pricing through a prepayment structure that will facilitate new infrastructure investment.
The Moomba project will boost production in the Cooper Basin
Signing the contract will allow Santos to move forward with the Moomba Central Optimization (MCO) project, whose final investment decision was made together with Beach Energy in March 2026.
The initiative seeks to increase the operational efficiency of the central fields in the Cooper Basin, where more than half of the region’s remaining proved and probable (2P) reserves are concentrated.
Key planned upgrades include replacing seven old compressor stations with a modern electric compressor station, adding new compression capacity at the Moomba gas plant, and strengthening the power generation system that will supply the production infrastructure.
These modifications will enable the fields to be operated remotely from the Moomba operations centre, reducing production costs and helping to lower carbon emissions.
An agreement that strengthens energy security
The first gas supply will begin on March 1, 2030, the date on which the Horizon contract that Santos holds with the GLNG joint venture ends.
According to Santos Managing Director and Chief Executive Officer Kevin Gallagher, the agreement ensures a competitive supply of domestic gas for South Australian industry and provides the stability needed to continue developing Cooper Basin resources in the coming years.
Gallagher also noted that the contract provides certainty for the company’s operations in the region and supports continued employment both in Adelaide and in other locations linked to gas production and processing activities.
Economic impact for South Australia
The new agreement also supports the state government’s policy aimed at ensuring energy supply for strategic industries, including the future transformation of the Whyalla steelworks.
In addition to strengthening gas availability for the domestic market, the investment associated with the MCO project will promote the hiring of local suppliers and South Australia’s economic development through new energy infrastructure works.
With this contract, Santos strengthens its position as one of the country’s leading gas producers and secures a long-term source of supply that will contribute both to domestic market stability and to the region’s industrial growth.
Source and photo: https://www.santos.com/
