30/06/2020 - 19:32

Perdaman moving on $4.5bn Karratha plant

30/06/2020 - 19:32

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Vikas Rambal’s dream to build a $4.5 billion Pilbara urea plant is forging ahead, with his Perdaman Industries appointing construction contractors, and flagging a mid-2021 final investment decision.

Perdaman moving on $4.5bn Karratha plant
Vikas Rambal chairs Perdaman Industries. Photo: Gabriel Oliveira

Vikas Rambal’s dream to build a $4.5 billion Pilbara urea plant is forging ahead, with his Perdaman Industries appointing construction contractors, and flagging a mid-2021 final investment decision.

But a decision next year on the chemicals plant will hinge on Woodside Petroleum pressing go on its own Scarborough LNG project, which would provide feed gas under a 20 year contract signed in 2018.

Today, Perdaman Industries will announce it has picked Clough and Italian business Saipem as head engineering, procurement and construction contractors on the project in a joint venture.

The Burrup Urea Plant will convert gas into urea, a fertiliser.

Mr Rambal told Business News that Perdaman, which he chairs, was about 15 months into the environmental process for the project.

“We’ve done our front end engineering and design, that was completed at the end of January,” he said.

The immediate next step will be selecting companies for geotechnical work.

Mr Rambal said he had kept working on the project and investing in it during the COVID-19 period because of the need for fertiliser to support food production in decades ahead.

The pandemic had highlighted the increasing importance of food security, he said.

“After (Burrup Fertilisers' ammonia plant), this will be the legacy of my life,” Mr Rambal said.

“It will be one of the world’s biggest.”

He said he was thankful the state government and traditional owners had supported the project.

Perdaman estimated the facility will generate $850 million in annual export revenue for WA, with 2,000 jobs to be created during construction.

The plant will include a 100 megawatt power station, water treatment facility, and a 7 kilometre conveyor to the Pilbara Ports Authority’s nearby terminal.

Clough chief executive Peter Bennett said it was a significant project for WA.

“We are very excited to be part of this milestone project,” Mr Bennett said.

“During the construction phase, this world class facility will create around 2,000 jobs and will be an important development for the Australian resources industry, significantly reducing the nation’s reliance on fertiliser imports.

“We are delighted to partner with Saipem, renowned for its work in urea projects internationally. 

“That combined with Clough’s Australian engineering and construction expertise, creates a capability that is unparalleled."

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