If the field meets expectations, it would be the first commercially viable tight gas field in Western Australia and a major supplier for industry, Latent said.

As part of the joint venture, Alcoa will fund a phased multi-well and 3D seismic program for the field in return for a 65% interest in the project.

Drilling of the 7000 hectare field is expected to begin in the fourth quarter of 2008 once a drilling rig arrives from the US.

Warro is a tight gas field and holds up to 5 trillion cubic feet of gas in place, 4km below the surface.

According to Latent, tight gas fields are common in other parts of world and if the same technology can be applied successfully in WA, the field could yield 1-3 trillion cubic feet of gas for domestic use.

"During the life of the field the joint venture could drill over 200 wells to produce an average of 100-150 million cubic feet of gas a day, which is about 10 percent of the needs of the South West," the company said.

If successful, the gas will be piped to the gas processing plant from various well pad groupings before being delivered to the Dampier to Bunbury and Parmelia pipelines.

Alcoa managing director Alan Cransberg said this latest collaboration builds on Alcoa's long history of underpinning energy infrastructure in WA.

"Western Australia is experiencing a serious shortage of gas with commercially viable supply failing to meet the state's growing demand," he said.

"The time to act is now. By partnering with Latent Petroleum, Alcoa is doing its part to find solutions and create a secure energy future for the state."

Latent managing director Stephen Keenihan said the recent events had highlighted the critical need for a comprehensive and diverse range of energy suppliers in WA.

"Warro would provide Western Australia with an alternative and new supply of gas to help keep up with the increasing demand for energy for the domestic market," he said.

Once the farm-in work is completed, Latent will hold a 25% share in the project and junior Transerv will hold 10%.