Santos (ASX:STO) secures supply deal extension with Rio

Company News

by Michael Luu

Energy heavyweight Santos (ASX:STO) has successfully extended its supply partnership with mining giant Rio Tinto (ASX:RIO).

Under the new contract, Australia’s second biggest independent gas producer will supply 15 petajoules of natural gas to the world's second largest metals and mining corporation. This marks the continuation of long-term collaboration between the ASX blue-chips. The terms and value of the agreement remain confidential.

Santos’ media release on Wednesday highlighted the significance of the new deal taking effect in 2021, “This new gas supply agreement underlines the importance of natural gas for Australian manufacturers and industry.″

Shares in Santos (ASX:STO) were trading 2.4 per cent lower at $6.85, as of 10.14 am.