PERTH (miningweekly.com) – Oil and gas major Santos has inked a new gas supply agreement with gold miner Gold Fields over its three gold mines in Western Australia.
Under the terms of the agreement, Santos would supply some 5.5 PJ of natural gas from its Varanus Island gas plant over a three-year period, starting in July this year.
“We are delighted Gold Fields has come back to Santos after a short hiatus, reinforcing our position as Western Australia’s biggest supplier of gas to the local market,” said Santos MD and CEO Kevin Gallagher.
“Santos supplies around 40% of the state’s total domestic demand, and we are committed to ongoing investment in developing new gas supplies in Western Australia.
“In these challenging economic times, we are focused on ensuring local gas prices remain competitive for Western Australian businesses over the long term.”