Alcoa Locks in 10-Year Gas Deal with Equus Energy
Alcoa has secured a 10-year gas supply deal with Australian gas developer Equus Energy. Under the agreement, Equus will provide Alcoa with approximately 50 terajoules per day of natural gas from its planned offshore project in Western Australia.
The contract represents a total supply volume of around 182 petajoules over the 10-year period and is expected to support Alcoa's expanding alumina refining operations in Western Australia. Alcoa will receive the gas at no specific price, but the agreement provides the company with greater visibility over future gas availability.
As part of the deal, Alcoa will provide Equus Energy with an advance payment of up to $30 million to support the completion of the front-end engineering design study for the Equus project. This funding will cover development costs until the project reaches a final investment decision (FID).