$6bn Urea Project in the Pilbara WA now under construction

Construction is now underway on Perdaman’s $6 billion urea project in the Pilbara, which was welcomed by the Australian and Western Australian Governments.

This project is the first gas manufacturing project in the Pilbara region in over a decade. The new state-of-the-art urea production facility is set to be the largest of its kind in Australia as well as one of the largest urea plants globally.

“This important project represents a significant investment in the Pilbara and WA, underlining the region’s role as the engine room of Australia’s economy.

“My Government is proud to support developments like the Perdaman Urea Project that will deliver decades of economic benefits for WA, creating local jobs and diversifying the Pilbara economy.

“It is estimated the project will create thousands of jobs within the State and generate a total revenue of $77 billion over its life,” Premier Mark McGowan said.

The Perdaman Urea Project is located in the Burrup Peninsula, about 20 kilometres north-west of Karratha.

Perdaman estimates that the multi-billion-dollar project will generate up to 2,500 jobs during its 4-year construction phase and about 200 permanent jobs in Karratha once the urea plant is up and running, providing a major boost to the State economy.

“This $6 billion urea project will unlock significant and strategic benefits locally, nationally and globally.

“It will provide fertiliser for Australian farmers and will support food security throughout the region and beyond.

“Ultimately it will help feed a great many people,” Resources; Northern Australian Minister Madeleine King said.

The urea plant is projected to produce about 2.3 metric tonnes of urea annually, which will help address the growing demand for high-quality fertilisers as well as reduce Australia’s reliance on imports while also enhancing the nation’s resilience.

Urea is a form of fertiliser that is widely used for food production.

The facility will be utilising feedstock from Woodside with a 20-year agreement. The project also has an offtake agreement with Incitec Pivot for a 20-year period.

The urea plant will incorporate the latest technology with optimised energy efficiency and low emissions, including Topsoe for ammonia synthesis and Snamprogetti & Thyssenkrupp for the urea and granulation processes.

“I welcome this significant milestone for our region - the first new gas manufacturing project in the Pilbara in more than a decade.

“The project will deliver hundreds of locally-based, high-quality jobs - strengthening our regional economy and supporting our local community,” Pilbara MLA Kevin Michel said.

Artist impression of the $6 billion project (source: Perdaman)

The Perdaman Urea Project was designed to have minimal industrial emissions and carbon footprint during the production of fertiliser. The company is committed to making the facility net carbon zero by 2050 through the implementation of global best practices with respect to greenhouse gas emissions. This initiative represents the company’s commitment to mitigating climate change.

In a statement, Perdaman thanked the Murujuga Circle of Elders and Murujuga Aboriginal Corporation for sharing their time as well as knowledge and guidance during the extensive consultation stage of the project. The company is looking forward to its long-term relationship “building a better and more respectful future on Murujuga”.

Perdaman also thanked the Australian and Western Australian Governments for their show of support towards the project.

“We know that Perdaman has worked closely with the Murujuga Aboriginal Corporation to ensure that industry can co-exist and thrive alongside the cultural values of the Traditional Owners.

“The urea produced at Perdaman’s Pilbara plant will be exported around the world and used in industry sectors such as agriculture.

“Infrastructure upgrades to facilitate the project will have flow on economic benefits for the State, including the potential development of other downstream processing and hydrogen projects,” State Development, Jobs and Trade Minister Roger Cook said.

The State Government has executed agreements to deliver over $300 million in funding for the development of the urea project and the surrounding region.

The significant funding includes the $255 million Northern Australia Infrastructure Facility (NAIF) loans for the Pilbara Ports Authority and Water Corporation.

The two NAIF loans granted last year include:

• $159 million to the Pilbara Ports Authority for a new multi-user wharf and facility at the Port of Dampier
• $96 million to the Water Corporation for the expansion of the Burrup seawater supply and brine disposal scheme that will connect to the Perdaman Urea Plant once built

In addition, over $50 million in funding was also committed by the State Government to support early design works and upgrades to infrastructure including road works, detailed design of a new Dampier Cargo Wharf and upgrades to seawater supply infrastructure.

The $6 billion Perdaman Urea Project is supported by Global Infrastructure Partners (GIP) with a more than $2.1 billion investment through a strategic equity investment. The project is also supported by Export Finance Australia (EFA), in addition to the support from NAIF.

“We are excited to be constructing Australia’s largest ever downstream manufacturing project which represents a significant investment in Australia’s manufacturing sector.

“This state-of-the-art facility will help to ensure that Australia has a secure and reliable source of high-quality urea, supporting our nation’s farmers and food producers.

“We are excited to welcome an investor of the calibre of GIP to support the Project. GIP’s experience in working alongside project sponsors globally is second to none, and I am confident that the resources and expertise they bring will contribute significantly to the success of this very important Project,” Perdaman CEO and Chairman Vikas Rambal said.

The construction of the new urea plant is managed by Perdaman’s engineering, procurement and construction (EPC) joint venture partners Saipem S.p.A and Webuild S.p.A.

Source: Government of Western Australia - Media Statements; Perdaman; Creamer Media’s Mining Weekly