Santos sells offshore gas to Alcoa

Australia’s oil and gas producer Santos has entered a contract to supply natural gas to Australia’s biggest aluminium producer, Alcoa of Australia Limited.

The contract starts in 2018 and will see Santos supply 82PJ of gas to Alcoa over an initial contract term of five years from the John Brookes field in the offshore Carnarvon Basin. The contract allows for two five year extension options by mutual agreement.

Santos General Manager WA&NT, Brett Woods, said the contract with Alcoa was the start of what he hoped would be a long and mutually beneficial partnership.

“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,” he said.

“I am confident it will set the foundation for a long, fruitful association between the two companies allowing for other gas supply opportunities to be explored.”

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

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