Santos secures gas supply contract with Alcoa

THE ROADHOUSE BOWSER: Santos (ASX: STO) has entered a natural gas supply contract with Australia’s biggest alumina producer, Alcoa.

The Oil & Gas big boy told the market the contract is dated to commence in 2018 and will result in Santos supplying 82PJ of gas to Alcoa over an initial contract term of five years from the John Brookes field in the offshore Carnarvon Basin.

Santos indicated the contract allows for 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 Western Australia’s biggest buyer of natural gas,” Santos general manager WA&NT Brett Woods said in the company’s announcement to the Australian Securities Exchange.

“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.”

Website: www.santos.com