Feb 20 (Reuters) – Australia’s Santos said on Friday it has signed an agreement with the South Australian government to supply 20 petajoules (PJ) of gas annually over 10 years to help transform Whyalla Steelworks into a low-emissions green iron facility.
Santos said it will supply gas from its Cooper Basin assets from 2030 and that the annual contract quantity represents around 30% of its current gas production from Cooper Basin.
“Santos gas will be used to enable Whyalla to deploy direct reduced iron technology that can process local magnetite ore to produce low-carbon iron,” Santos MD and CEO Kevin Gallagher said.
“This will keep jobs in Whyalla and the Cooper Basin, and reduce emissions by approximately 50% compared to the former coal-fired blast furnace operations.”
Santos announced a 10% headcount reduction with its annual results on Wednesday.
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Subhranshu Sahu)
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