Equus Energy Ltd. has signed a binding gas sales agreement with Alcoa of Australia, establishing Western Australia’s largest domestic gas user as the foundation customer for the offshore Equus Gas Project.
Under the 10-year contract, Equus will supply approximately 50 terajoules per day (TJ/day) of natural gas to Alcoa following project start-up.
The agreement represents roughly 182 petajoules (PJ) of gas over the contract term, accounting for approximately 5 per cent of WA’s domestic gas market.
The agreement forms a key part of a broader gas sales and funding agreement between both companies, unlocking up to US$30 million (AU$42.24 million) in funding from Alcoa.
The capital will support Equus through its Pre-FEED, front-end engineering design (FEED), and progress towards a final investment decision (FID). The agreement also satisfies the Equus gas project’s domestic supply requirements under WA’s Domestic Gas Reservation Policy.
Alcoa is a major integrated aluminium producer and Western Australia’s largest domestic gas user.
Confirmation of the agreement follows the technical phase of Pre-FEED, which verified that Equus is a technically feasible and capital-efficient tie-back project.
The development model aims to leverage existing North West Shelf processing infrastructure, allowing Equus to supply local industrial users while simultaneously backfilling spare LNG export capacity.
Equus Energy Managing Director Will Barker said the contract provides a solid commercial foundation for the multi-trillion-cubic-feet offshore resource.
“The execution of this major Gas Supply Agreement with Alcoa demonstrates the strategic importance of the Equus Gas Project, as a large, proven and vital gas resource, that can meet the shortfalls in WA’s domestic market and backfill spare LNG capacity on the North West Shelf,” Barker said.
“Establishing Alcoa as our foundation domestic gas customer and funding partner for up to US$30 million provides a strong commercial platform as we move into the next phase of the project.”
With key commercial terms locked in, Equus has commenced project partnering and commercialisation activities as it drives the asset towards FID.
