Media release: Gas agreement confirms critical role of gas in Australia’s manufacturing future

Today’s agreement between Santos and the South Australian Government to supply 200 petajoules of gas over 10 years to underpin the Whyalla Steelworks transformation underscores the critical role of natural gas in powering Australian industry and enabling large-scale decarbonisation.

Australian Energy Producers Chief Executive Samantha McCulloch said the deal demonstrates that reliable, long-term gas supply is essential for a strong Australian manufacturing sector and securing regional jobs.

“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,” Ms McCulloch said.

“It is also a practical pathway for many heavy industries to achieve real emissions reductions while maintaining their global competitiveness.

“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.”

“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.”

Ms McCulloch said the announcement builds on South Australia’s record of encouraging investment in 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,” Ms McCulloch said.

“It reflects a clear understanding of the vital role natural gas plays in powering the state’s economy and supporting heavy industry.”

Australian Energy Producers’ policy platform for the upcoming South Australian election highlights the opportunity for natural gas to drive growth in the state’s manufacturing industries.