Norwegian company Dyno Nobel has taken charge of the Dampier Nitrogen project on the Burrup Peninsula, which has been on the drawing boards for several years but has been restructured several times.
Under the latest changes, Dyno has agreed to fund an initial feasibility study into the development of an ammonia plant, expected to cost about $650 million.
Dyno’s general manager ammonium nitrate, Ian Smith, has taken over as project director and Dyno has been given the casting vote on the project management committee.
Dyno’s partners in the proposed ammonia plant are listed company Plenty River Corporation (45 per cent) and Thiess (5 per cent). Following completion of the feasibility study, Plenty River is required to introduce a new equity partner or find an alternative way of funding its equity contribution.
Separate to the ammonia project, Thiess and Plenty River will investigate the feasibility of developing a $450 million granular urea plant on an adjacent site. In addition, Dyno Nobel will continue to separately assess a $300 million downstream ammonium nitrate project.
The Burrup Peninsula has been mooted as the site for several gas processing projects, but to date the only project to proceed is Indian company Burrup Fertilisers’ $630 million ammonia plant.
Canadian company Agrium, which was a partner in the Dampier Nitrogen consortium, is proceeding with environmental studies on an ammonia-urea project, while Indian company Deepak Fertilisers has assessed a $300 million ammonium nitrate project.
Also, Burrup Fertilisers has been investigating the feasibility of building a second plant.