Whyalla Steelworks is set to secure long-term gas supply under a binding term sheet signed between Santos and the South Australian Government to support the plant’s transformation into a low-emissions green iron facility.
The agreement provides for a 10-year supply of 20 petajoules (PJ) of gas per year, delivered ex-Moomba from 1 March 2030. The contract includes indexed pricing and a prepayment structure aligned with industry norms. The volume represents around 30pct of Santos’ current Cooper Basin production and will be supplied from the Moomba Central Area.
The gas will enable Whyalla to deploy direct reduced iron (DRI) technology, using local magnetite ore to produce low-carbon iron and cut emissions by around 50pct compared with the previous coal-based blast furnace operations. The arrangement also supports continued activity in the Cooper Basin and underpins Santos’ planned Moomba Central optimization project.
The transaction remains subject to final gas supply agreements and regulatory approvals by 30 June 2026.
Whyalla Steelworks, currently in administration following the collapse of its previous owner GFG Alliance, is undergoing a competitive sale process. The facility, Australia’s only fully integrated producer of rail and structural steel, has crude steel capacity of approximately 1.2 mln tons per year.
