Perdaman announces signed Gas Sale and Purchase Agreement with Woodside for world class urea plant for Western Australia
Today, Perdaman Chemicals and Fertilisers (Perdaman) and Woodside Energy Limited (Woodside) signed a historic Gas Sale and Purchase Agreement (GSPA) for the supply by Woodside of domestic gas to the proposed Perdaman Urea Plant on the Burrup Peninsula in Karratha for a period of 20 years with option to extend to 25 years.
Perdaman’s two million ton per annum urea plant has been awarded “Project of State Significance” status by the WA State Government. The State has committed to undertaking work to amalgamate two sites reserved for the plant on the Burrup Peninsula and has committed to working with Perdaman’s technical team to facilitate access to common user infrastructure and port.
Key highlights of the project are as follow:
• The project will create in excess of 2,000 direct jobs during the 3-year construction phase and have a permanent staff of 200 to operate the plant on a non-fifo basis in Karratha
• The plant will be Australia’s first urea export project supplying the growing Asia Pacific demand
• The project where possible will invest in the employment of local workforce
• Perdaman has invested US$175m into the project to date
• The Perdaman Project will bring NPV of US$15 billion in local economy in life cycle of this plant
Perdaman’s Chairman, Vikas Rambal said “this is a landmark gas contract between two Western Australian companies, Perdaman and Woodside, and importantly kickstarts a new wave of local manufacturing in the State creating local jobs and supporting the local community on the Burrup.”
“I would like to thank Woodside CEO, Peter Coleman, and the Woodside Board and Management for their continued support on this exciting world-class downstream project in WA.”
“We look forward to working with the local community in Karratha and local Shire to start the work on this project in the near future.”
“I would also like to thank the Honourable Mark McGowan, Premier of WA and Minister for State Development, Jobs and Trade, and the Honourable Alannah MacTiernan, Minister for Regional Development, and the State Government for their continued support for the project. I look forward to working together with them in partnership to finalise land and infrastructure terms and delivering this world class project to drive economic activity in the region and WA”.
Perdaman, who is being advised by EY Mergers & Acquisitions, will now progress to finalising offtake and equity partners and completing project financing.
The West publication, 21/11/2018
Financial Review publication, 22/11/2018