PERDAMAN CLOSES THE FINANCING FOR ITS SIGNIFICANT WESTERN AUSTRALIAN UREA PROJECT
Wednesday, 26 April 2023
Perdaman Chemicals and Fertilisers Pty Ltd (“Perdaman”) acknowledges the Traditional Custodians of Murujuga land, namely the Ngarluma, Yindjibarndi, Yaburara, Mardhudhunera and Woong-Goo-Tt-Oo people and pays our respects to their Elders past, present and emerging.
Perdaman is pleased to announce that it has closed the financing of its c. A$6.0 billion urea project (the “Project”) to be constructed on the Burrup Peninsula, approximately 20km north of Karratha, Western Australia. On completion of the Project, Perdaman will be Australia’s leading fertiliser producer. The Project funding is supported by leading global independent infrastructure investor Global Infrastructure Partners (“GIP”), which has committed to invest over A$2.1 billion in the Project through a strategic equity investment. The funding is completed by a strong group of debt providers, including both the Northern Australia Infrastructure Facility (“NAIF”) and Export Finance Australia (“EFA”).
This state-of-the-art facility will be the largest urea plant in Australia and one of the largest in the world. Urea is a vital component of the agricultural fertiliser market with increasing demand as more efficient and intensive global food production is required to meet the needs of a growing world population.
The construction of this plant marks a significant milestone for Australia’s future food security, and it represents the largest investment ever made in the Australian fertiliser industry. The plant’s expected production of 2.3 million metric tons per year of urea will help to address the growing demand for high-quality fertilisers, reduce the nation’s reliance on imports and enhance national resilience.
The Project will utilise feedstock from Woodside under a 20-year agreement and has a 20-year offtake agreement with Incitec Pivot.
The urea plant incorporates the latest technology with optimised energy efficiency and low emissions: Topsoe for the ammonia synthesis and Snamprogetti & Thyssenkrupp for the urea and granulation processes.
The plant has been designed to minimise both industrial emissions and the carbon footprint of fertiliser production. Perdaman is committed to making the urea plant net carbon zero by 2050 and is implementing global best practices with respect to greenhouse gas emissions which represents our commitment to mitigating climate change. The plant also includes a world-class control system that will ensure that the urea produced is of the highest quality.
Perdaman is grateful for the ongoing support for this Project from the Western Australian State Government and the Federal Government. Perdaman also thanks the Murujuga Circle of Elders and Murujuga Aboriginal Corporation for sharing their time, knowledge and guidance during extensive consultation and looks forward to a long-term relationship building a better and more respectful future on Murujuga.
The company believes the Project will provide a major boost to the Western Australian economy by generating an average of around 2,000 jobs during the four-year construction phase. On completion, the plant will provide 200 permanent jobs in Karratha and will be capable of providing security to Australia in respect of its needs for urea fertilisers and associated products such as diesel exhaust fluid (e.g. AdBlue).
“We are excited to be constructing Australia’s largest ever downstream manufacturing project which represents a significant investment in Australia’s manufacturing sector,” said Vikas Rambal, Chairman and CEO of Perdaman. “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.”
Construction of the Project will commence immediately and will be managed by Perdaman’s experienced EPC joint-venture partners Saipem S.p.A and Webuild S.p.A.
EY acted as equity financial advisor to Perdaman on the Project, Societe Generale acted as debt financial advisor, whilst White & Case acted as legal advisor. Allens acted as legal advisor to GIP.
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About the Project
The Project will be one of the lowest-cost suppliers of urea in the Asia-Pacific and as well as one of the largest urea producers globally. The Project is uniquely positioned among key domestic and export markets and critical enabling infrastructure. The Project has been strongly supported by The Western Australian Government being allocated Project of State Significance status.
The construction of this plant is a major milestone for Perdaman and for the Australian fertiliser industry. It demonstrates our commitment to innovation, sustainability, and reducing our environmental impact. We look forward to leading the industry in providing high-quality, sustainable fertilisers to support global food production and security.
About Perdaman
Perdaman is a multinational group based in Western Australia with a long-standing track record in involvement within a diverse range of markets. From investments in fertiliser production to help our farmers produce crops, to the ownership and management of shopping centres that make wonderful experiences and community hubs, from the production and distribution of pharmaceuticals to provide better healthcare, to recruitment & migration services and advanced energy solutions, we are an innovative company that actively seeks out new opportunities. Integral to this is our corporate culture of creating leaders and growing together as a team, and all our operations are backed by extensive financial services to ensure strength and growth. We are also highly involved in the community and actively give back – from supporting local sporting teams to contributing towards better education. We do what we do with passion, and we do what we do with a sincere desire to create a better tomorrow.
For more information, visit www.perdaman.com.au
About Global Infrastructure Partners
GIP is a leading independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses. GIP targets investments in the energy, transport, digital infrastructure, and water/waste sectors in both OECD and select emerging market countries. Headquartered in New York, GIP operates out of 10 offices: New York, London, Stamford (Connecticut), Sydney, Melbourne, Brisbane, Mumbai, Delhi, Singapore and Hong Kong. GIP manages c. US $89 billion for its investors. GIP’s portfolio companies have combined annual revenues of c. US $80 billion and employ over 100,000 people.
For more information, visit www.global-infra.com.
About Export Finance Australia
EFA is Australia’s export credit agency. EFA supports Australia’s trade and infrastructure agenda by providing commercial finance for exporting businesses and Indo-Pacific infrastructure development. EFA administers the Australian Government’s National Interest Account, which includes the Critical Minerals Facility, the Defence Export Facility and lending for the Australian Infrastructure Financing Facility for the Pacific.
For more information, visit https://www.exportfinance.gov.au/
About Northern Australian Infrastructure Facility
NAIF is a Commonwealth Government development financier, investing for impact in Northern Australia. NAIF’s primary purpose is to accelerate infrastructure development and thereby drive transformational growth in northern Australia by innovative financing that:
- Generates public benefit including that outside of what is captured by the project proponent.
- Encourages longer term growth in the economy and population of northern Australia.
- Encourages private sector participation in the financing of northern Australia’s infrastructure needs; and
- Facilitates sustainable Indigenous participation, procurement, and employment outcomes.
For more information, visit: www.naif.gov.au
Media Contact:
Rashpal Kaur (Manager – Corporate)
+61 477 722 620