Santos has officially executed a long-term gas supply agreement with the South Australian Government to provide 200 petajoules (PJ) of gas over a ten-year period. This strategic South Australia gas supply arrangement is set to commence in 2030, reinforcing domestic energy security for the state’s industrial and residential sectors. Under the terms of the contract, 20 PJ of gas will be delivered annually from 1st March 2030 through February 2040, with the supply delivered ex-Moomba.
The contract features an indexed pricing model and a prepayment structure. This gas supply agreement provides a cornerstone market for resources originating from the Cooper Basin’s Central Fields, which hold more than half of the region’s remaining proved and probable reserves. The prepayment mechanism is designed to directly support capital investment in regional infrastructure development over the coming years.
Infrastructure Upgrades at the Moomba Gas Plant
The deal serves as a foundation for the Moomba Central Optimisation project, which reached a final investment decision in March 2026. This initiative focuses on modernizing the Moomba gas plant by replacing seven aging gas-driven compressor stations with a single, high-efficiency electric-driven station. These upgrades at the Moomba gas plant are expected to increase productivity and lower operating costs while simultaneously reducing carbon emissions through more streamlined operations.
Santos Chief Executive Officer Kevin Gallagher stated that the contract secures South Australia gas supply for local industry while providing the necessary certainty for continued investment in Cooper Basin. The agreement also supports the South Australian Government’s Strategic Gas Reserve initiative, which is intended to safeguard domestic energy security and facilitate industrial growth, including the planned transition of the Whyalla Steelworks. By maintaining steady Cooper Basin production, the agreement helps sustain employment across regional operations and balances export commitments with local requirements.
