en.Wedoany.com Reported - Dimension News, August 14 – Australian energy company Equus Energy (ASX:EQU) has signed a binding but conditional 10-year gas sales agreement (GSA) with Alcoa of Australia (ASX:AAI), making Alcoa the foundation domestic customer for the Equus Gas Project.

Under the agreement, Equus will supply approximately 50 terajoules of natural gas per day to Alcoa once the project comes online, totaling approximately 182 petajoules over the contract term, equivalent to around 5% of Western Australia's domestic gas market.Based on a gas price estimate of US$6–8 per gigajoule, the agreement is valued at approximately US$1.1–1.46 billion in total, though the actual contract price has not been disclosed.

As part of the agreement, Alcoa will provide Equus with up to US$30 million in prepayments to advance front-end engineering design (FEED) work until the project reaches a final investment decision (FID).Equus Managing Director Will Barker stated that Alcoa serves as both a foundation customer and financier, providing a solid commercial platform for the project to move into its next phase.

The Equus Gas Project is located in the Northern Carnarvon Basin of Western Australia, approximately 200 kilometers northwest of Onslow, and holds 2C contingent resources of 1.7 trillion cubic feet of natural gas and 38 million barrels of condensate.Equus previously completed the Pre-FEED technical phase in May 2026, confirming the technical feasibility of a tie-back development utilizing existing North West Shelf infrastructure.

The company stated that the agreement satisfies the project's gas supply requirements under the Western Australian government's domestic gas reservation policy.Equus has now entered the project cooperation and commercialization phase, while advancing regulatory approvals in preparation for FEED and FID.