National gases and engineering company BOC has won a long-term contract to supply Perdaman Chemicals & Fertilisers' $US2.5 billion urea plant to be developed near Collie.
Under terms of the deal, worth an estimated $1 billion, BOC will supply nitrogen and oxygen over a 20 year period with an additional five year option to the Perdaman project, which will transform sub-bituminous coal into urea using clean coal gasification technology.
BOC South Pacific managing director Colin Isaac said the contract was a significant milestone for the company that underpinned its commitment to clean and innovative technology solutions.
"We see clean coal gasification as a major growth area so we are delighted to be on board with Perdaman who are promoting best-in-class technologies in this field, adding value to Australia's existing coal resources and supporting Australian industry,'' Mr Isaac said.
Perdaman Chemicals and Fertilisers chairman Vikas Rambal said he looked forward to an "effective and mutually beneficial" long-term alliance with BOC.
Last month, Perdaman finalised rail access and transport deals with WestNet Rail and QR National.
The WestNet access agreement spans 25 years, while QR National's haulage agreement is for 20 years.
Perdaman is continuing negotiations with the Port of Bunbury regarding final details of its port arrangements.
