Equus Energy (ASX:EQU) has received Alcoa approval to move into Stage Two of the Equus Gas Project, unlocking a further US$1.5M to support project partnering.
The move follows completion of Stage One Pre-FEED and the earlier signing of a binding 10-year gas sales agreement with Alcoa.
That gives Equus three important pieces.
A large gas resource, a committed domestic customer, and now fresh funding to bring in the partners needed to move toward FEED and FID.
Stage One clears the technical hurdle
Pre-FEED confirmed a development concept built around a phased tie-back using a leased FPSO, third-party pipeline infrastructure and existing LNG and domestic gas processing facilities.
Equus holds an independently certified 2C Contingent Resource of 1.7Tcf of gas and 38MMbbl of condensate.
The company’s economic work estimates an NPV10 of US$867M, an IRR of 31% and Phase 1 capex of around US$1.25B.
The concept is now moving out of technical validation and into commercial execution.
Figure 1: Equus Gas Project development concept – a capital-efficient tie-back development
leveraging existing North West Shelf infrastructure.
Alcoa is already on the other side of the table
Equus signed a binding 10-year gas sales agreement with Alcoa in August.
Under the deal, Equus is expected to make available around 50TJ per day of domestic gas, equivalent to about 182PJ over the contract term.
Equus is not trying to partner a project with no customer story, a major buyer is already in place.
Why Equus matters in the bigger WA gas picture
The timing is becoming more important.
North West Shelf production is in decline, while Equus estimates Karratha Gas Plant and Pluto could be facing around 15Mtpa of spare LNG capacity in the early 2030s.
At the same time, WA is heading toward a tighter domestic gas balance, creating a window for new supply that can serve both local buyers and existing LNG infrastructure.
With Equus targeting first gas in 2033, the project is being positioned directly into that emerging supply gap rather than chasing demand from scratch.
Now comes the partner hunt
Stage Two will focus on securing operating, LNG offtake, infrastructure and financing partners.
Equus has already started discussions with strategic operating groups and plans to launch a broader process in Q4 2026.
The company still owns 100% of the project, giving it flexibility around farm-ins, infrastructure participation and potential sell-downs.
That optionality is now the main commercial lever.
What comes next
The next phase is all about who comes in, on what terms and how much capital they bring.
Equus has done the work to show the project can be developed.
It has also locked in a major domestic gas buyer.
Now it needs to turn that foundation into a partner group capable of carrying Equus through FEED and toward FID.
