Santos to supply Kleenheat gas

Western Australia’s Kleenheat has secured three years’ worth of gas from Santos under a new supply agreement.

Santos is WA's largest gas supplier, accounting for about 45 per cent of the state's gas requirements.

The Adelaide-headquartered company will supply more than 16 petajoules of gas from its processing operations on Varanus Island – an archipelago off WA's north-west coast.

Kleenheat, along with other Wesfarmers' Chemical, Energy and Fertiliser businesses, will use the gas until 2021.

The agreement would support local jobs and business opportunities, Santos managing director Kevin Gallagher said.

“We are committed to investing in exploration and development of new domestic gas supplies to meet the energy needs of WA households and businesses for the long-term,” he said.

Santos shares were down 2 per cent at 12:37pm AEDT to trade at $4.85.