02/07/2009 - 10:33

Overseas firms picked for Perdaman work

02/07/2009 - 10:33

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Oil and gas major Shell is one of three international companies selected to supply technology to Perdaman Chemicals and Fertilisers' proposed $3.5 billion Collie urea project.

Overseas firms picked for Perdaman work

Oil and gas major Shell is one of three international companies selected to supply technology to Perdaman Chemicals and Fertilisers' proposed $3.5 billion Collie urea project.

Shell will provide the plant's core coal gasification and gas treatment.

It will be joined by Danish company Haldor Topsoe A/S which will provide ammonia synthesis technology and Netherlands company Stamicarbon BV, providing the urea melt technology and fluid bed granulation technology.

Today's contract comes a month after Perdaman secured Korea's Samsung Engineering and Indonesia's Inti Karya Persada Tehnik for the engineering, procurement and construction contract for the plant.

Perdaman has also signed a 25-year offtake deal with Griffin, which will supply some 2.7 million tonnes of coal to the project each year.

Construction of the project is anticipated to start in the second quarter of next year.

An offtake deal has been signed with the Indian government for the bulk of the urea produced at the plant. The project is projected to generate over $850 million in export earnings each year for the state.

The project is expected to employ 1,500 people over the three-year construction period and host 200 workers when the plant is in operation.

 

The announcement is below:

 

Perdaman Chemicals and Fertilisers (Perdaman) has selected its coal gasification, ammonia and urea melt and
granulation technology providers for the A$3.5 billion Collie Urea Project in Western Australia.

The state of the art technologies will be sourced from three international companies. Oil and gas major Shell
will provide the plant's core coal gasification and gas treatment technology, with Danish company Haldor
Topsoe A/S providing the ammonia synthesis technology, and Netherlands company Stamicarbon BV providing
its Urea 2000 plus™ melt technology and fluid bed granulation technology.

The selection of the technology providers comes four weeks after the company signed a binding Heads of
Agreement with Korea's Samsung Engineering and Indonesia's Inti Karya Persada Tehnik (IKPT) for the EPC
(Engineering, Procurement and Construction) work on the plant.

Each of the technology providers is a world leader in its field and they will all work closely with the EPC
contractors to complete the detailed engineering design work for the 2 million tonne per annum plant.

The Collie Urea Project will transform sub-bituminous coal into urea, a widely used form of fertiliser, using state
of the art emissions coal gasification technology. The plant will generate in excess of A$850 million per annum in
export earnings for Western Australia.

Perdaman's Chairman and Managing Director Vikas Rambal said that with the signing of the licence agreement
the key components for the development of the Collie Urea Project were now in place.

"A site has been allocated in the Shotts Industrial Estate, the State Government is supportive of the project, our
approval processes are underway and we now have our contractors and core technology in place," he said.

"Our technology providers are all leading specialists in their fields and will be contributing valuable expertise to
this project in readiness for the scheduled start of operations in 2013," he said.

"Now we can turn our attention to the local components of this project as the bulk of the work will be done on
site in Collie and our policy will be to involve as many Western Australian companies as possible."

Shell Clean Coal Energy Executive Vice President Peter de Wit said Shell's proven coal gasification technology,
with 27 licences sold to date, can help Perdaman to achieve high plant reliability, best in class thermal efficiency
and a good environmental performance.

"Shell is committed to developing its coal gasification and related technologies, and it will also support
Perdaman with the provision of operational services before, during and after plant start up to enable smooth
plant operations.

Dr Haldor Tops√łe said his company was very committed to making the project a success. "Haldor Topsoe is
pleased that it can contribute by supplying the ammonia synthesis technology which will have a single‐line
capacity of more than 3,500 tonne per day of ammonia."

Samsung Engineering Chairman and Chief Executive Yeon‐Joo Jung said the EPC team looked forward to a close
and collaborative working relationship with all three providers to design, develop and deliver a world‐class urea
plant.

"We now have a comprehensive team whose skills and experience cover all aspects of this project and will allow
us to complete the urea plant in the proposed timeframe and to the high standards required by Perdaman
Chemicals and Fertilisers," said Yeon-Joo Jung.

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