The gas will be sourced from the John Brookes gas field offshore Western Australia and processed at the Varanus Island gas hub. Supply will commence in the second half of 2010.

This contract will be solely supplied by Santos from its share of John Brookes’ production. Santos has a 45% non-operating interest in the John Brookes gas field, with operator Apache Energy holding the other 55% stake.

Wesfarmers extracts LPG from the Dampier to Bunbury transmission pipeline for domestic and export markets, as it has done since 1988. Wesfarmers purchases gas to replace energy content it takes from the pipeline, to ensure the fulfilment of gas supply to other pipeline users.

John Anderson, vice president of Santos, Western Australia and Northern Territory, said: ”We are pleased to build on our important relationship with Wesfarmers in Western Australia.

”Santos is a leading natural gas supplier to Western Australia, and this agreement further enhances our position in the domestic market.”