Alcoa invests $2.1M in Equus Energy

• Alcoa provided $2.1 million in funding to Equus Energy after approving preliminary engineering work.
• Equus Energy needs outside investors to fund a $1.75 billion offshore gas development in Western Australia.
• The company is searching for major offshore operators and long-term customers to help build the project.

Equus Energy (ASX:EQU) secured another $2.1 million from Alcoa (NYSE:AA) to help progress its gas development project off Western Australia.

The project requires an operator and external investors despite Alcoa already agreeing to purchase gas covering 5% of state domestic demand.

“Our focus now moves firmly to project partnering,” said Equus Energy Managing Director Will Barker.

The August assessment estimated the initial development cost at $1.75 billion, excluding a floating production vessel and export pipeline.

The company plans to appoint an adviser in the December quarter to sell project stakes to outside investors.

Following the announcement the Equus Energy share price stood at $0.40.

Equus Energy previously held $13.4 million in cash at June 30 and relies on conditional milestone payments from its partner.

The overall plan aims for first gas by 2033, targeting domestic customers along with Asian buyers for annual LNG exports.