- Equus Energy and Alcoa execute binding long-term GSA
- Alcoa becomes Equus’ foundation domestic gas customer
- GSA supports Alcoa funding agreement, which provides Equus with up to US$30 million in development funding
- Follows the technical phase of Pre-FEED, which confirmed capital-efficient development
Equus Energy (ASX: EQU) has signed a binding 10-year gas sales agreement (GSA) with Alcoa, establishing the aluminium giant as the foundation domestic gas customer for the proposed Equus gas project in Western Australia.
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Under the agreement, Equus will supply approximately 50 terajoules per day (TJ/day) of gas for 10 years, equivalent to approximately 182 petajoules (PJ) over the contract term.
Based on an indicative gas price of $6 to $8 per gigajoule, that volume would represent approximately $1.1 billion to $1.46 billion of gas over the 10-year term.
The agreement also forms part of Equus’ broader arrangement with Alcoa, which provides Equus with access to up to US$30 million in project funding as it advances the Equus gas project towards a final investment decision (FID).
Equus is located approximately 200km northwest of Onslow on WA’s North West Shelf and hosts an independently certified 2C Contingent Resource of 1.7 trillion cubic feet (Tcf) of gas and 38 million barrels of condensate.
“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,” Equus Energy MD, Will 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 100% ownership of the only independent, multi-Tcf gas resource on the North West Shelf, our focus is now on project partnering and commercialisation as we drive Equus to a final investment decision (FID).”
EQU was up 12.9% to 35.0¢. Mkt cap $63.43M.
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