Equus Energy, a newly-listed company on the Australian stock exchange following a A$15 million IPO, is advancing its wholly-owned Equus gas project offshore Western Australia. The project is situated between Woodside’s Scarborough and Chevron’s Gorgon developments.

Project Development and Timeline

The company aims to commence Front-End Engineering and Design (FEED) in 2027. Key milestones include signing a lease agreement for a Floating Production, Storage and Offloading (FPSO) vessel in the second half of 2026, alongside agreements for an offshore gas pipeline, gas/LNG processing, and LNG sales and financing. A final investment decision, previously delayed from 2023/2024, is now targeted after these agreements. The company also plans to complete a strategic farm-in with an operating partner in the first half of next year.

Development Concept and Resources

The capital-efficient development concept involves three to five subsea wells at startup, with planned production of 350 terajoules (approx. 330 million cubic feet) of gas per day. Over a 15-year life, the project is designed to produce 2 million tonnes per annum of LNG for export and 50 terajoules per day of domestic gas. Certified best-estimate contingent resources are 1.7 trillion cubic feet of gas and 38 million barrels of condensate.

Pathways to Commercialisation and Infrastructure

The project is a tie-back to existing infrastructure, leveraging proximity to plants operated by Woodside, Chevron, and Santos for cost advantages. Key processing arrangements include non-binding term sheets signed in 2022 with Woodside for the Pluto Train 1 and the Karratha Gas Plant. The Karratha route could come online in 2027, while the Pluto LNG route is planned for 2030, both enabling over 2 million tpa of LNG exports. Equus also has a processing agreement with Santos via the Varanus Island facility.

Recent Progress and Financing

Following a 2022 exploration well (Sasanof-1) that found no commercial hydrocarbons, a major milestone was reached in 2023 with a US$30 million pre-funding agreement with Alcoa. This secures Alcoa an exclusive right to 50 terajoules per day of gas for 10 years, meeting about 25% of its long-term WA gas needs. This funding supports project costs until FID and has enabled the commencement of the pre-FEED phase. An earlier pre-FEED study was conducted in 2018.