A $4.5 billion project to turn natural gas into urea on Western Australia’s Burrup Peninsula has taken a step closer to reality with the signing of an off-take agreement with fertiliser producer, Incitec Pivot Fertilizers.
Incitec Pivot has entered into a 20 year agreement to take up to 2.3 million tonnes a year of granular urea fertiliser from Perdaman Chemicals and Fertilisers’ proposed urea plant near Karratha.
Perdaman has secured natural gas for 20 years from Woodside for the plant to be built in the Burrup Strategic Industrial Area.
The agreement is contingent on Perdaman obtaining financing for the construction of the new plant and obtaining necessary environmental and regulatory approvals.
The company plans to complete the plant by 2025.
Incitec Pivot told investors the off-take agreement secured for the company a competitive long-term domestic supply of urea for its Australian customers and to expand sales into growing global markets.
CEO Jeanne Johns said: “The investment by Perdaman in a new world-scale plant will make it one of the most energy efficient plants in the world.
“We are pleased to support such a significant domestic manufacturing project.”
Perdaman is a diversified multinational group based in Perth with operations here and in India, China, the Philippines, Singapore and the United Kingdom.
As well as fertilisers the company is also owner of shopping centres, produces pharmaceuticals, and provides migration, recruitment services and advanced energy solutions.
Picture: Burrup Peninsula
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