Alcoa has signed a binding 10-year gas sales agreement (GSA) with Australian gas developer Equus Energy.
Equus will provide 50 TJ/d of gas to Alcoa, equivalent to 182PJ over the term of the deal, from its planned Equus project offshore of Western Australia
Alcoa will use the supplies to power its expanding portfolio of Western Australia-based alumina refineries.
In return, Alcoa will provide advance payment of $30mn to complete a front-end engineering design (Feed) study for the Equus project in Western Australia’s North West Shelf region.
The funding will cover project costs until it reaches a final investment decision (FID), Equus said.
It did not specify a timeline for the FID.
Equus, which was known as Western Gas until December 2025, completed a pre-Feed study for the Equus project in May.
The project will address a peak day gas supply shortfall in Western Australia and will represent 5% of the Western Australian domestic gas market upon completion, Equus said.
The deal with Alcoa will fully satisfy Equus’ commitments under Western Australia’s domestic gas reservation policy, the company said.
Alcoa operates the Pinjarra and Wagerup alumina refineries in Western Australia.
Equus Energy Managing Director 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.”
Pictured: From left: Paul Volich (Regional General Counsel/Company Secretary – Australia, Alcoa),
Nick Eaton (Energy Director – Australia, Alcoa), Elsabe Muller (Vice President Operations – Australia and President, Alcoa Australia), Will Barker (Managing Director, Equus Energy) and Andrew
Leibovitch (Executive Director, Equus Energy), at the Gas Sales Agreement signing at Alcoa’s Perth boardroom.