Alcoa has entered into a binding 10-year gas sales agreement (GSA) with Australian gas developer Equus Energy to secure long-term natural gas supplies for its alumina refining operations in Western Australia.
Under the agreement, Equus Energy will supply Alcoa with approximately 50 terajoules per day (TJ/d) of natural gas from its planned Equus gas project, located offshore in Western Australia. Over the 10-year contract period, the agreement represents a total supply volume of around 182 petajoules (PJ).
Alcoa intends to use the contracted gas to meet the energy requirements of its expanding portfolio of alumina refineries in Western Australia. The company operates the Pinjarra and Wagerup alumina refineries, both of which rely on reliable energy supplies for large-scale industrial production.
As part of the agreement, Alcoa will provide Equus Energy with an advance payment of up to $30 million. The funding will support the completion of the front-end engineering design (FEED) study for the Equus project and cover development costs until the project reaches a final investment decision (FID). Equus has not yet announced a specific timeline for the FID.
The agreement also strengthens the commercial foundation of the Equus project. Equus Energy, formerly known as Western Gas until December 2025, completed a pre-FEED study for the project in May. The company plans to develop the resource to address a projected peak-day gas supply shortfall in Western Australia.
According to Equus, the project could account for approximately 5% of Western Australia’s domestic gas market once operational. The company also said the agreement with Alcoa fulfills its obligations under the state’s domestic gas reservation policy.
Equus Energy Managing Director Will Barker said securing Alcoa as the project’s foundation domestic gas customer and funding partner provides a strong commercial platform for advancing the development.
The company stated that it owns the only independent, multi-trillion-cubic-foot gas resource on the North West Shelf. With the Alcoa agreement secured, Equus will focus on project partnerships, commercialization and progressing toward FID.
The long-term agreement provides Alcoa with greater visibility over future gas availability while giving Equus an important customer and funding support for its planned offshore development.
Product Impact
The agreement is positive for Alcoa’s alumina operations because it improves long-term natural gas security and reduces exposure to potential supply shortages in Western Australia. Stable gas availability can support refinery utilization, operating continuity and production planning. For Equus Energy, Alcoa’s commitment strengthens project economics and improves the prospects of reaching FID. The deal could also encourage additional investment in Australian domestic gas infrastructure. However, the impact on alumina production costs will depend on the contracted gas price and broader Australian energy-market conditions.
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