Santos has reached a binding agreement with the South Australian Government to secure the continued supply of gas to the Whyalla steel plant for a decade, commencing March 1, 2030. The agreement provides for the shipment of 20 petajoules annually from the Moomba facility, with a prepayment and price indexation structure aligned with industry standards.
Technology and employment for an energy transition
With this contract, Whyalla is moving towards the implementation of direct iron reduction technologyThis will enable the processing of local magnetite without the use of coal-fired blast furnaces. This represents an approximate 50% reduction in carbon emissions, consolidating the plant’s role as a hub of the industrial energy transition in the Upper Spencer Gulf.
The agreement, which still needs to be fully formalized by June 2026, strengthens the region’s energy security and protects jobs in Adelaide, Whyalla and Moomba. Santos currently employs more than 1,000 people in South Australia and the new commitment will help extend that job stability to at least 2045.
Production and supply of gas from the Cooper Basin
The agreed amount is equivalent to 30% of Santos’ current gas production in the Cooper Basin. The company plans to supply the volume through developments in the Central Moomba Area, where it anticipates investments in infrastructure, more productive wells and significant reductions in operating costs.
In addition to the environmental value, the contract allows Santos to diversify its sales portfolio, with a natural hedge against oil-indexed contracts. This financial predictability will support the execution of the Moomba Central Optimization Project.
Strategic agreement supported by the government
Santos CEO Kevin Gallagher noted that the agreement allows industrial growth to be aligned with the objectives of decarbonization goals. He also highlighted that this partnership with the state government is a model of public-private cooperation for sustainable economic development.
The operation was made possible by a Conditional Ministerial Exemption under the Gas Market Code. This regulatory backing highlights the strategic relevance of the project, not only for the steel industry but for the energy transformation of the entire state of South Australia.
Source: Santos
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