Australian gas producer Santos has signed an agreement with the South Australian Government for the long-term supply of gas to support the transformation of the Whyalla Steelworks into a low-emissions green iron facility.
Related article: Court dismisses greenwashing case against gas giant Santos
The South Australian Government forced the steelworks into administration in February 2025 due to owner GFG’s debts of more than $300 million and workers being unpaid.
Prime Minister Anthony Albanese swiftly announced a $2.4 billion rescue package, saying the federal government would go “dollar for dollar” with the state government in its relief efforts.
Santos managing director and CEO Kevin Gallagher said, “With this agreement, Santos is also proud to be playing an important role in South Australia’s broader economic future by supporting the government’s plan for sale and transformation of the Whyalla Steelworks.
“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. 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.
“We’ve been a gas supplier to Whyalla for many years and we are pleased to be working with the South Australian government on its green steel vision for a future made in Australia.”
Supply under the agreement will commence on March 1, 2030. The annual contract quantity of 20PJ represents around 30% of Santos’ current gas production from the Cooper Basin and is able to be supplied from the Moomba Central Area fields development.
Related article: PM pledges $2.4 billion rescue deal for Whyalla steelworks
The transaction is subject to agreement of a fully formed gas supply agreement by June 30, 2026, internal approvals of the parties, and other regulatory approvals.
