Australian Santos signs gas supply deal with Norwegian fertilizer giant Yara

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June 1 (Reuters)Australian gas producer Santos Ltd STO.AX announced on Wednesday that it has entered into a new gas supply agreement with a unit of Yara International YAR.OL to supply natural gas to the Norwegian fertilizer giant’s liquid ammonia plant in Western Australia.

Santos said he would also work with Yara Pilbara Fertilizers to explore decarbonization opportunities in Western Australia (WA), including carbon capture and storage.

Santos will supply more than 120 petajoules (PJ) of natural gas over five years, starting when its current agreement with Yara, the country’s No. 1, ends in 2023. Addition of 2 independent gas producers.

Santos supplies approximately 40% of the state’s total domestic demand, “and we are committed to continually investing in the development of new gas supplies in WA,” said general manager Kevin Gallagher.

Santos shares edged down 0.1% in early trading, along with the Home Energy sub-index .AXEJ down around 0.5% at 12:15 GMT.

(Reporting by Indranil Sarkar in Bengaluru; Editing by Rashmi Aich)

((Indranil.Sarkar@thomsonreuters.com; mobile: +91 7022132226;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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