Alcoa (ASX:AAI) signed a conditional gas sales agreement with Equus Energy (ASX:EQU) for the domestic gas supply from the Equus gas project in Western Australia, according to a Friday filing with the Australian bourse.
Equus will make roughly 50 terajoules of gas per day available to the company for 10 years, equivalent to about 182 petajoules of gas over the contract term, the filing said.
The deal forms part of the broader gas sales and funding agreement between the two companies, providing Equus with access to up to $30 million of funding to support the project's advancement, per the filing.
Alcoa shares fell 5% in afternoon trade Friday, while Equus shares rose past 10%.