Santos (ASX:STO) inks new deal with Yara Pilbara Fertilisers

Santos (ASX:STO) signed a new agreement with Yara Pilbara Fertilisers to supply natural gas to Yara’s liquid ammonia plant on the Burrup Peninsula in Western Australia.

The energy giant will supply over 120 petajoules of natural gas over five years, starting at the completion of Santos’ current agreement with Yara in 2023. Santos and Yara will also work together to explore decarbonisation opportunities in Western Australia, including carbon capture and storage.

“We are delighted to extend our agreement with Yara, reinforcing our position as WA’s biggest supplier of domestic gas to the local market,” said Santos’ chief executive officer Kevin Gallagher.

“Working with our customers to explore decarbonisation opportunities is fundamental to Santos’ climate transition action plan.”

“As Australia’s biggest domestic gas supplier and a leading Asia Pacific LNG supplier, we are committed to supplying critical fuels such as natural gas in a more sustainable way through decarbonising projects.”

Shares are trading 0.4 per cent higher at $8.24.