Equus Targets 1.7 Tcf Gas to Fill Asia Data Centre Shortfall
Equus Energy’s 1.7 Tcf gas resource aims to supply underutilized Australian LNG plants, addressing a projected tripling of Southeast Asian power demand by 2035.
Key points
- Southeast Asian data centre power demand is projected to triple to 9.4GW by 2035, creating a stable, high-volume need for LNG imports.
- Australia has fallen to the world's third-largest LNG exporter, with facilities like Karratha and Pluto operating below capacity due to feedstock shortages.
- Equus Energy’s 1.7 Tcf gas resource contains high natural gas liquids, making it technically compatible with existing underutilized Australian export plants.
Equus Energy is positioning its 1.7 trillion cubic feet gas resource to address a widening supply gap in Southeast Asia, driven by a surge in data centre power consumption. The company’s strategy targets underutilized Australian liquefied natural gas (LNG) export capacity, specifically the Karratha Gas Plant and Pluto facilities, which have recently operated below nameplate output.
According to research cited by Stockhead, power requirements for data centres in the region are projected to triple from 2.8 gigawatts to 9.4 gigawatts by 2035. This demand growth coincides with a decline in domestic gas production in key markets like Malaysia and Thailand, creating a structural need for stable, high-volume LNG imports that can support 24/7 grid reliability.
Data centre boom drives gas demand
The expansion of artificial intelligence infrastructure has created a unique category of energy offtakers characterized by high creditworthiness and cycle-resistant consumption. Wood Mackenzie analysts note that these data centres require combined-cycle gas turbines to meet continuous power needs, making LNG the most viable fuel source for grid stability. This shift alters the risk calculus for new supply contracts, as buyers are committing to long-term, stable volumes regardless of broader economic fluctuations.
Equus Energy managing director Will Barker stated that the timing is critical for Australian suppliers, as the region’s domestic gas output is peaking and declining. He emphasized that gas and LNG offer the necessary flexibility to quickly increase energy supply, bridging the gap left by the removal of coal from the grid and the insufficient capacity of existing renewable infrastructure to handle base-load data centre loads.
Australia's stagnating LNG export capacity
Australia has slipped from the world’s largest LNG exporter to third place behind the United States and Qatar, a decline attributed to a decade of limited investment in exploration and development. Production has stagnated, with the only recent addition being Pluto Train Two, which utilizes gas from the Scarborough field. Meanwhile, existing facilities face feedstock constraints; the Karratha Gas Plant was forced to shut a train last year due to insufficient gas supply, while Queensland export sites have consistently operated below their maximum capacity.
This supply deficit presents a direct operational risk for Australian energy infrastructure, as major Asian customers increasingly require reliable volumes that the current domestic production base cannot guarantee. Barker noted that even the development of new fields like Browse may not fully resolve the issue, leaving significant North West Australian LNG facilities underutilized as demand in the region accelerates.
Equus resource suits existing plants
The Equus project holds an independently certified 2C contingent resource of 1.7 trillion cubic feet of gas and 38 million barrels of condensate. The resource is characterized by high levels of natural gas liquids, including ethane and propane, which contribute to high heating values. These specific compositional attributes make the gas ideally suited for the existing processing infrastructure at the Karratha Gas Plant and Pluto, allowing for efficient integration without requiring major capital expenditure on new export terminals.
