Santos enters into gas supply contract with Alcoa

Santos and Alcoa have today announced a five-year contract for natural gas supply, starting in 2018 and worth 82 petajoules over five years.

The contract will ensure a gas supply from the Carnavon Basin’s John Brookes field, and has the option of two five-year extension options (by mutual agreement).

“This is a significant contract for us, not only in terms of its value but also in its tie – up with WA’s biggest buyer of natural gas,” said Santos’s west coast general manager Brett Woods in a statement.

“This contract also consolidates our place as one of the biggest suppliers of domestic gas in WA, a market share we want to grow.”

Ensuring a reliable supply of competitively-priced gas is a huge issue for energy-intensive manufacturers, such as aluminium and fertiliser producers.

According to research from BIS Shrapnel released last September by the Reserve Our Gas coalition, gas price rises could shut one-fifth of the country’s heavy industry manufacturers over the next five years.

 

Image: http://aluminium.fivesgroup.com