Oil and Gas News

Santos locks in gas agreement with Kleenheat

Woodside LNG agreement Strandline

Santos has secured a new agreement to supply natural gas to Western Australian energy solutions provider, Kleenheat.

Under the contract, Santos will supply more than 16 petajoules (PJ) of gas from its Varanus Island processing operations over three years from 2021.

Santos managing director and chief executive officer Kevin Gallagher said the agreement further cemented the company’s position as the leading supplier of clean, affordable and reliable energy in Western Australia.

“In these challenging economic times, this agreement with one of Western Australia’s largest users of natural gas is good for Kleenheat, good for Santos and good for WA, supporting local jobs and business opportunities, and demonstrating our confidence in WA’s future,” Gallagher said.

“Santos supplies approximately 45 per cent of the State’s domestic gas requirements and we are committed to investing in exploration and development of new domestic gas supplies to meet the energy needs of WA households and businesses for the long term.”

Santos highlighted that the gas, condensate and oil from the offshore John Brookes, Harriet and Spar-Halyard fields is piped to the Santos-operated Varanus Island processing facility.

As a result, the sales gas is then transported to mainland WA via two 100-kilometre pipelines, where it is supplied to major mining and industrial customers.

Kleengeat is part of Wesfarmers Chemical, Energy and Fertilisers (WesCEF), a group of businesses that will also utilise the gas.

The company retails natural gas to WA customers between Geraldton and Busselton, including the Perth metropolitan area, providing local support and ongoing value for households and businesses who choose to support local.