Clough-Saipem JV offically awarded EPC contract for WA urea project

Following the signing of a binding Heads of Agreement to deliver engineering, procurement and construction (EPC) works at the Karratha Urea Project in July 2020, the Clough – Saipem joint venture has officially been awarded the contract in December 2020. 

Under this contract, the joint venture will be undertaking engineering, supply of equipment and materials as well as construction, pre-commissioning and commissioning of the urea plant. 

Scope of works will also include EPC for all site civil works, urea handling and storage, loading and unloading facilities, water treatment plant, a more than 100MW power plant and site buildings. 

“We are very excited to announce that we have reached the agreement to deliver this iconic project that will be one of the largest and lower emissions urea plant in the world. In addition, this is an important development for the Australian resources industry, significantly reducing the nation’s reliance on fertilizer imports and will set a standard for low-emissions and high efficiency technologies,” Clough CEO and Managing Director Peter Bennett said. 

Perdaman has invested approximately $4.5 billion for the development of the Urea Project. 

The Karratha Urea Project is located on the Burrup Peninsula, about eight kilometres from Dampier and 20 kilometres northwest of Karratha on Western Australia’s north west coastline. 

“We have reached an agreement for a strategic EPC contract in Australia. We congratulate Perdaman Industries for the achievement, and we are grateful for the confidence demonstrated towards our Saipem – Clough JV. This project – one of the largest and environmentally efficient urea plants in the world – will strengthen our leadership role in the gas monetisation market and will contribute to further diversify our geographical footprint in a country leading on decarbonisation,” Italy-based Saipem’s CEO Stefano Cao said. 

Once completed, the urea plant will have a capacity of 2.14Mtpa. The urea from the plant will then be transported to the Pilbara Ports Authority via a 7-kilometre closed conveyor for shipping to local as well as offshore markets, with 50 to 100 shiploads expected annually. 

The plant will be utilising natural gas sourced from Woodside for 20 years for the production of urea fertilizer.

This multi-billion-dollar project is expected to generate an average of 2,000 jobs over a three-year construction period and up to 200 permanent jobs once the plant is up and running, providing a much-needed boost to the Wester Australian economy. 

Source: Clough; Saipem; Perdaman