Australia's oil and gas company Santos has entered into a new gas supply agreement with Gold Fields Limited for its three gold mines in Western Australia.
Santos will supply nearly 5.5 petajoules of natural gas from its Varanus Island gas plant over three years, starting on July 1, 2020.
Gas, condensate, and oil from the offshore John Brookes, Harriet and Spar-Halyard fields is piped to the Santos-operated Varanus Island processing facility. The sales gas is then transported to mainland WA via two 100-kilometer pipelines, where it is supplied to major mining and industrial customers. Oil and condensate are stored on the island and transferred to tankers for direct export.
Commenting on the deal with Gold Fields, Santos Managing Director and Chief Executive Officer, Kevin Gallagher said Santos continued to support Western Australian mining and industry through the delivery of competitively-priced domestic gas.
"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 supplies around 40 percent 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.”