An agreement between Santos and the South Australian Government to supply 200 petajoules of gas over 10 years for the transformation of the Whyalla Steelworks highlights the role of natural gas in Australia’s manufacturing sector, according to industry body Australian Energy Producers.
In a media release, Australian Energy Producers said the deal would underpin the Whyalla Steelworks transformation and demonstrates the importance of reliable, long-term gas supply in supporting large-scale industrial projects and decarbonisation efforts.
Chief Executive Samantha McCulloch said natural gas remains a key energy source for manufacturers. “Natural gas is a major source of energy for industry, providing almost 40% of the energy used by Australian manufacturers to make essential products like steel, cement, bricks and glass,” McCulloch said.
She said gas also provides a pathway for heavy industries seeking to reduce emissions while remaining competitive.
“It is also a practical pathway for many heavy industries to achieve real emissions reductions while maintaining their global competitiveness,” she said.
McCulloch said the agreement reinforced the need for continued investment in new gas supply to meet long-term industrial demand.
“Australian manufacturing will continue to need natural gas for reliable, affordable energy. However, meeting that long-term demand reinforces the need for investment in new gas supply,” she said.
“Projects like the Whyalla Steelworks transformation highlight real industrial demand for natural gas, and policy settings must support timely exploration and development of gas to ensure supply keeps pace.”
She added that the announcement builds on South Australia’s approach to supporting gas exploration and development.
“The South Australian Government’s pragmatic approach to energy policy acknowledges that gas is fundamental to strengthening the state’s long-term energy security and delivering real emissions reductions,” McCulloch said.
“It reflects a clear understanding of the vital role natural gas plays in powering the state’s economy and supporting heavy industry.”
