Alcoa Signs 10-Year Gas Deal with Equus Energy

Equus Energy (ASX:EQU) has signed a 10-year gas sales agreement with Alcoa (ASX:AAI), Western Australia's largest domestic gas user, for supply from its Equus Gas Project.

The deal establishes Alcoa as the project's foundation domestic gas customer and provides Equus with access to up to US$30 million in funding to advance pre-front-end engineering design (Pre-FEED) and front-end engineering design (FEED) work.

Under the agreement, Equus will supply approximately 50 terajoules of gas per day, representing about 182 petajoules over the contract term. This volume is equivalent to around 5% of Western Australia's domestic gas market.

The company states that this approach could reduce development costs and allow the project to supply both Western Australia's domestic market and Asian LNG customers through a tie-back development using existing North West Shelf infrastructure and spare liquefied natural gas processing capacity.