Oz Santos Signs New Domestic Gas Deal
Australian oil and gas explorer Santos has entered into a new gas supply agreement with Gold Fields for its three gold mines in Western Australia. The company will supply nearly 5.5 petajoules (5.2bn ft3) of natural gas from its Varanus Island gas plant over three years, starting on July 1, 2020.
“We are delighted Gold Fields Limited has come back to Santos after a short hiatus, reinforcing our position as Western Australia’s biggest supplier of gas to the local market,” Santos CEO Kevin Gallagher said. “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.”
Santos-operated Varanus Island facility processes gas, condensate and oil from the offshore John Brookes, Harriet and Spar-Halyard fields. The sales gas is then transported to mainland Western Australia via two 100-km pipelines, where it is supplied to mining and industrial customers.