PERTH (miningweekly.com) – Oil and gas major Santos has struck a new gas supply agreement with Western Australia’s Yara Pilbara Fertilisers to supply natural gas to its liquid ammonia plant on the Burrup Peninsula, in Western Australia.
Santos will supply over 120 PJ of natural gas over five years, starting at the completion of Santos’ current agreement with Yara in 2023.
In addition to the gas supply agreement, Santos and Yara will also work together to explore decarbonisation opportunities in Western Australia, including carbon capture and storage.
Santos MD and CEO Kevin Gallagher said Santos continues to support Western Australian industry through the delivery of competitively priced domestic natural gas.
“We are delighted to extend our agreement with Yara, reinforcing our position as Western Australia’s biggest supplier of domestic gas to the local market. Working with our customers to explore decarbonisation opportunities is fundamental to Santos’ climate transition action plan.
“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,” said Gallagher.
“As Australia’s biggest domestic gas supplier and a leading Asia Pacific liquefied natural gas supplier, we are committed to supplying critical fuels such as natural gas in a more sustainable way through decarbonising projects.”