Equus Energy has completed its pre-front end engineering design (Pre-FEED) economic evaluation for the Equus gas project off Western Australia, outlining a capital-efficient, tieback development model.
The proposed development leverages an independently evaluated 2C Contingent Resource of 1.7 trillion cubic feet (Tcf) of gas and 38 million barrels (MMbbl) of condensate.
Under the preferred development concept, Equus targets a production capacity of two million tonnes per annum (Mtpa) of LNG, 50 terajoules per day (TJ/d) of Western Australian domestic gas, representing roughly 5 per cent of state demand, and a peak condensate rate of 12,000 barrels per day over a 15-year field life.
To minimise initial expenditure, the company plans to stage production drilling across three phases while utilising a leased floating production storage and offloading (FPSO) vessel and a third-party offshore pipeline.
Gas will be processed via existing North West Shelf infrastructure at Pluto or Varanus Island under tolling arrangements.
This commercial structure caps Phase 1 capital outlay at approximately US$1.25 billion (AU$1.78 billion), focusing upstream investment on production wells and subsea systems.
Financial modeling highlights robust project economics, delivering an estimated post-tax, unlevered net present value of US$867 million and an internal rate of return (IRR) of 31 per cent, with capital payback expected within two years of first gas, targeted for 2033.
Life-of-project nominal revenues are forecast at US$22.3 billion, generating US$11.6 billion in EBITDA at a 52 per cent margin. The modelled LNG breakeven price sits at US$6.60/MMBtu.
Equus Energy Managing Director Will Barker said the Pre-FEED evaluation establishes a clear commercial framework for upcoming negotiations.
“By concentrating upstream funding on the production wells, subsea system and project delivery, while using third-party capital for the FPSO and export pipeline, the development plan reduces Phase 1 capital,” Barker said.
Equus will now advance discussions with potential upstream partners, infrastructure owners, customers, and financiers ahead of entering FEED and reaching a final investment decision.
