Australia-based oil and gas company Santos has signed a binding term sheet with the South Australian government to supply natural gas for the long-term transformation of the Whyalla Steelworks into a low-emissions green iron production facility.
The agreement provides a 10-year gas supply contract covering 20 petajoules (PJ) per year, with deliveries scheduled to begin on March 1, 2030.
DRI technology central to green iron production
The supplied gas will support the deployment of direct reduced iron (DRI) technology at Whyalla, enabling locally mined magnetite ore to be converted into lower-carbon iron. The transition is expected to cut emissions by approximately 50 percent compared with the previous coal-based blast furnace route.
The project represents a major step in Australia’s broader ambitions to develop a domestic green iron and green steel value chain while maintaining industrial activity and employment in the Upper Spencer Gulf region.
The transaction remains subject to finalization of a definitive gas supply agreement by June 30, 2026, along with required internal and regulatory approvals.