Santos signs WA gas supply deal

SANTOS has sealed a deal to supply gas to Alcoa, the biggest gas user in Western Australia, notching up a new customer for gas from its John Brookes field in the Carnarvon Basin.

The deal is for the supply of 82 petajoules of gas to Alcoa over an initial five year period, with the ability for the contract to be extended by mutual agreement for another 10 years in two separate extensions.

Santos didn't comment on the pricing terms, but Western Australia and Northern Territory general manager Brett Woods described the deal as "significant" for Santos and signalled it could lead to further similar deals.

"I am confident it will set the foundation for a long, fruitful association between the two companies allowing for other gas supply opportunities to be explored," Mr Woods said in a statement.

Read the full story at the Brisbane Times.

The deal comes after first gas arrived at Santos' GLNG project on Curtis Island in Gladstone.

A flare on the GLNG project was lit on Friday in a controlled ignition of the flare stack soon after natural gas was introduced into the plant.