Energy giant Santos announced Friday it has reached a 10-year deal with South Australia’s government to deliver natural gas that will help convert the Whyalla Steelworks into an environmentally sustainable iron production plant.
Beginning in 2030, the Australian company will provide 20 petajoules of natural gas each year sourced from its Cooper Basin operations. This commitment equals approximately one-third of Santos’ existing gas output from that region.
According to Santos Managing Director and Chief Executive Kevin Gallagher, the natural gas will power new technology at the facility. “Santos gas will be used to enable Whyalla to deploy direct reduced iron technology that can process local magnetite ore to produce low-carbon iron,” Gallagher explained.
The executive emphasized the environmental and economic benefits of the partnership. “This will keep jobs in Whyalla and the Cooper Basin, and reduce emissions by approximately 50% compared to the former coal-fired blast furnace operations,” he stated.
The gas supply announcement comes just days after Santos revealed plans to cut its workforce by 10% as part of its annual financial results released Wednesday.
