Equus Energy has launched on the ASX with full ownership of the Equus Gas Project, backed by a $46 million conditional funding and gas sales agreement with Alcoa. The project aims to supply a significant new gas source for Western Australia’s LNG and domestic markets.
- Equus Energy lists on ASX after acquiring Equus Gas Project
- 100% ownership and operatorship confirmed by regulator
- Conditional $46 million funding and gas sales deal with Alcoa
- Equus Gas Project holds 1,702 Bscf gas and 38 MMstb condensate
- Project development advancing with $16.5 million cash on hand
Equus Energy’s ASX Debut and Project Acquisition
Equus Energy Limited (ASX, EQU) marked a significant milestone by commencing trading on the Australian Securities Exchange in December 2025. This followed its acquisition of the Equus Gas Project offshore Western Australia and a successful $15 million public offer. Regulatory approval from the National Offshore Petroleum Titles Administrator (NOPTA) confirmed Equus Energy’s 100% ownership and operatorship of the project, clearing the final hurdle for the acquisition and listing.
A Large-Scale, Development-Ready Gas Resource
The Equus Gas Project is positioned on the North West Shelf, near Karratha, WA, nestled between major LNG developments like Woodside’s Scarborough and Chevron’s Gorgon projects. It boasts an independently certified contingent resource of 1,702 billion standard cubic feet (Bscf) of gas and 38 million barrels of condensate, making it one of the largest undeveloped gas resources in the region. The project is designed for modular, phased development leveraging existing infrastructure, aiming to produce 2 million tonnes per annum of export LNG alongside 50 terajoules per day of domestic gas over a 15-year life.
Strategic Partnership with Alcoa
In a pivotal move, Equus Energy secured a conditional funding and gas sales agreement with Alcoa of Australia Limited. This deal provides staged funding of up to US$30 million (approximately A$46 million) to support pre-Front-End Engineering Design (pre-FEED) and FEED studies, regulatory approvals, and project partnering. In return, Alcoa gains exclusive rights to about 50 terajoules per day of domestic gas for 10 years, covering roughly 25% of its long-term gas needs for alumina processing in WA. This partnership not only underpins project financing but also secures a significant domestic gas off-take, enhancing project viability.
Financial Position and Next Steps
Equus Energy entered the quarter with $16.5 million in cash, bolstered by the IPO proceeds and initial Alcoa funding. The company reported operating cash outflows consistent with advancing project studies and corporate activities. Funds are being directed towards progressing pre-FEED and FEED studies, regulatory processes, and commercial discussions. The company’s strategy focuses on unlocking the strategic value of its large-scale gas resource to address anticipated supply shortfalls in both the international LNG and Western Australian domestic gas markets.
Outlook for WA Gas Supply
With gas supply tightening in Western Australia, the Equus Gas Project’s timing is critical. Its proximity to existing LNG plants and infrastructure offers a potentially capital-efficient pathway to market. The conditional Alcoa agreement signals strong industrial demand support, while the project’s modular development approach aims to mitigate capital intensity and accelerate delivery. Equus Energy’s progress will be closely watched as it navigates the next phases of engineering, approvals, and potential final investment decisions.
Bottom Line?
Equus Energy’s next moves in project studies and regulatory approvals will be pivotal in transforming a large gas resource into a vital supply lifeline for WA’s energy future.
Questions in the middle?
- Will Equus Energy secure additional funding or partners beyond Alcoa to fully finance the project?
- How will evolving gas market dynamics in WA and Asia impact the Equus Gas Project’s commercial viability?
- What are the key regulatory or technical risks that could delay the project’s final investment decision?