Energy giant Santos (ASX:STO) has signed a binding term sheet with the State Government to supply 200 petajoules of natural gas over a decade.
Starting March 1, 2030, the agreement provides a critical energy backbone for the transformation of the Whyalla Steelworks into a world-class, low-emissions green iron facility.
The deal mandates a steady supply of 20PJ per year delivered ex-Moomba, strategically timed to commence as Santos’ existing Horizon contract with the GLNG joint venture expires.
The partnership is a cornerstone of the government’s plan to transition Whyalla toward direct reduced iron technology.
By processing local magnetite ore with natural gas rather than traditional coal-fired blast furnaces, the facility aims to slash carbon emissions by approximately 50%.
Beyond environmental benchmarks, the agreement serves as a massive economic stabiliser.
Santos CEO Kevin Gallagher emphasised that the deal secures regional employment across Adelaide and the Cooper Basin for at least the next 15 years.
With Santos already contributing over $370 million annually to South Australian businesses and employing 1,100 locals, this 2030 roadmap reinforces their role as a "critical corporate citizen."
At the time of reporting, Santos' share price was $6.90.