$4.2BN US KARRATHA UREA PROJECT – REVISED EPC CONTRACT SIGNED

Perdaman Chemicals and Fertilisers has signed a revised Engineering, Procurement and Construction (EPC) contract for its Urea Project in Karratha with a 50/50 joint venture between Clough of Western Australia and Saipem of Italy.

The new total EPC contract price is USD $2.7billion, which has been revised from the previous contract signed in March 2021. This new price increase is due to changes in market conditions and logistical challenges faced in recent times.

Perdaman will invest a total of $4.2 billion US to develop the plant which will transform natural gas into urea, a form of fertiliser widely used in the production of food for future generations. Perdaman has secured natural gas for 20 years from Woodside under the Gas Supply Agreement signed in November 2018.

The Project has been strongly supported by The Western Australian Government, being allocated Project of State Significance status.

Perdaman acknowledges and pays its respect to the traditional custodians of the land and to past, present and emerging elders. Perdaman believes that the Urea Project will provide a major boost to the Western Australian economy by generating on average around 2,000 jobs during the three-year construction phase. On completion, the plant will provide 200 permanent jobs in Karratha.

Perdaman’s Chairman Vikas Rambal says the milestone is significant and is a strong example of economic diversification.
“The coronavirus pandemic and latest war in Ukraine has taught us an important lesson about the food security of our society and our over-reliance on imports,” said Mr Rambal.

“The company is pleased to be part of job creation for the State and is privileged to be a part of the manufacturing initiative project in WA again, and we are very thankful to the federal government for the continuous support,” said Mr Rambal.