Gold Fields, Santos sign three-year gas deal

Gold Fields has inked a gas supply agreement with Western Australia’s biggest domestic gas supplier, Santos.

This agreement will  see Santos provide gas to three of Gold Fields’ Western Australian mines.

The company owns the St Ives, Agnew and Granny Smith gold mines, on top of the Gruyere joint venture with Gold Road Resources, also located in Western Australia.

Santos will supply almost 5.5 petajoules of natural gas from its Varanus Island gas plant over three years starting July, following a period of hiatus from Gold Fields.

Santos managing director and chief executive Kevin Gallagher said the company had continued to deliver competitively priced domestic gas to support Western Australian mining and industry.

“In these challenging economic times, we are focussed on ensuring local gas prices remain competitive for Western Australian businesses over the long term,” he said.

Santos supplies around 40 per cent of the total domestic demand in Western Australia. The company plans to develop new gas supplies in the state.

Gold Fields produced 914,000 attributable ounces of gold at its Western Australian mines in the 2019 financial year.

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