AUSTRALIAN company Santos announced it has entered a contract to supply natural gas to alumina producer, Alcoa of Australia, commencing in 2018.

In a statement, Santos said the contract outlines the supply of 82 petajoules of gas to Alcoa over an initial contract term of five years from the John Brookes field in the offshore Carnarvon basin.

The contract allows for two five year extension options by mutual agreement, the company said.

Santos general manager of Western Australia and Northern Territory, Brett Woods, said the contract was the start of what he hoped would be a long and mutually beneficial partnership.

“This is a significant contract for us, not only in terms of its value but also in its tie-up with WA’s biggest buyer of natural gas.”

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

“This contract also consolidates our place as one of the biggest suppliers of domestic gas in WA, a market share we want to grow,” he said.