Santos has executed a 10-year Gas Sale Agreement (GSA) with the South Australian Government to supply 200 petajoules (PJ) of natural gas for the state’s Strategic Gas Reserve between 2030 and 2040.
The agreement follows the execution of key commercial terms announced earlier in 2026 and provides for the supply of 20 PJ of gas annually from Santos’ Moomba operations. Deliveries are scheduled to commence on 1st March 2030, coinciding with the expiry of the company’s existing Horizon contract with the GLNG joint venture.
The agreement is expected to underpin the long-term future of the Cooper Basin Central Fields, located near Moomba in South Australia. The Central Fields contain more than half of the remaining proved and probable (2P) gas reserves within the Cooper Basin, making them a strategically important source of domestic energy.
The contract includes an indexed pricing mechanism and a prepayment structure that will directly support Santos’ capital investment in the Moomba Central Optimisation (MCO) project. The project, which received final investment approval in March 2026 from Santos and its joint venture partner Beach Energy, is scheduled to be delivered over three years.
The MCO project is designed to improve production efficiency while reducing operating costs and carbon emissions. Plans include replacing seven ageing gas-driven compressor stations with a single electric-driven compressor station to remove upstream bottlenecks and enhance production capacity.
Additional upgrades at the Moomba Gas Plant will include new inlet compression facilities and expanded power generation capacity to support gas processing and remote operation of the Central Fields from the Moomba operating centre.
According to Santos, the agreement strengthens long-term domestic gas supply for South Australia while supporting continued investment in critical energy infrastructure. The company also noted that the project is expected to improve the competitiveness and reliability of gas production from the Cooper Basin, helping to meet future industrial demand across the state.
The gas supply agreement forms part of the South Australian Government’s Strategic Gas Reserve initiative, which aims to enhance energy security and ensure reliable gas supplies for industry over the coming decades. The reserve is also expected to support major industrial developments, including the planned transformation of the Whyalla Steelworks.
Santos said the agreement reinforces its long-term commitment to South Australia, where it maintains significant operational and employment activities. The company also highlighted its ongoing contribution to the state’s economy through local procurement, community investment and royalty payments while continuing to develop domestic gas resources to support Australia’s energy security.
For more information visit www.santos.com
