Santos signs long-term gas supply agreement to support Whyalla's transition to green Iron

The Australian oil and gas company Santos has signed a binding contract with the Government of South Australia for the supply of natural gas for the long-term transformation of the Whyalla metallurgical plant into a low-emission green pig iron production facility.

The agreement provides for a 10-year gas supply contract covering 20 petajoules (PJ) per year, with deliveries scheduled to begin on March 1. 2030.

Direct iron reduction technology plays a central role in the production of green iron

The supplied gas will facilitate the introduction of direct iron reduction (DRI) technology in Whyalla, which will convert local magnetite ore into low-carbon iron. The transition is expected to reduce emissions by about 50 percent compared to the previous coal-fired blast furnace route.

The project represents an important step in Australia's broader ambitions to develop an internal value chain of environmentally friendly iron and steel while maintaining industrial activity and employment in the Upper Spencer Gulf region.

The deal still depends on the completion of a final gas supply agreement by June 30, 2026, as well as the necessary internal and regulatory approvals.