Equus Energy (ASX: EQU) Signs 10-Year Gas Deal With Alcoa

Equus Energy (ASX:EQU) has signed a binding conditional gas sales agreement with Alcoa of Australia, securing a foundation customer for its Equus Gas Project.

The agreement covers approximately 50 terajoules of gas per day for 10 years after project start-up. That equates to about 182 petajoules across the contract term.

Equus estimates the daily volume represents roughly 5% of Western Australia’s domestic gas market. The announcement did not disclose gas pricing or projected contract revenue.

Commercial Foundation Takes Shape

Alcoa is Western Australia’s largest domestic gas user and a major integrated aluminium producer. Its participation gives Equus a large industrial customer as the project moves beyond technical pre-front-end engineering design (pre-FEED) work.

The agreement also satisfies the project’s domestic supply commitment under Western Australia’s Domestic Gas Reservation Policy.

However, the gas sales agreement remains conditional, and supply will begin only after project start-up. Equus has not yet taken a final investment decision on the development.

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.”

Funding Linked to Development Studies

The gas deal forms part of a broader Gas Sales and Funding Agreement between Equus and Alcoa. That arrangement gives Equus access to as much as US$30 million in project funding.

The funding is intended to support Pre-FEED and FEED studies and advance the project toward a final investment decision.

For Equus, the combination of customer demand and study funding addresses two important parts of project development. It establishes a planned domestic sales channel while supporting the technical work required before an investment decision.

Existing Infrastructure Underpins the Plan

Equus said the technical phase of Pre-FEED confirmed a technically feasible and capital-efficient tie-back development. The concept would use existing North West Shelf infrastructure and spare LNG processing capacity.

This approach could allow the project to serve Western Australia’s domestic market and Asian LNG export markets. It is also designed to reduce development costs by using infrastructure already in place.

Equus owns 100% of the Equus Gas Project, which it describes as an independent, multi-trillion-cubic-foot gas resource on the North West Shelf. Its contingent resource estimates were first reported in the specialist report attached to its December 2025 prospectus.

The company said no new information materially affects those estimates. It also confirmed the underlying assumptions and technical parameters remain applicable.

What Comes Next?

Equus has commenced project partnering and commercialisation activities. It is also progressing approvals as the development moves toward FEED and a final investment decision.

The Alcoa agreement provides a defined long-term customer and a potential funding pathway. Yet construction and supply remain dependent on Equus completing further studies, partnering work, approvals and its final investment decision.