Perdaman awards EPC contract to Clough, Saipem JV to build urea plant in Australia

WCN Editorial Team 2 Jul 2020 OCEANIA BUILDINGS

Perdaman Industries had awarded an engineering, procurement and construction (EPC) contract to a joint venture of Clough and Saipem for the construction of its urea plant in Karratha, Australia.

The scope of the work will include engineering, construction, pre-commissioning and commissioning of the ammonia and urea plant along with EPC for all site civils, process plant, utilities, urea handling, storage and loadout, storage facilities and site buildings.

The facility will include the urea fertiliser plant along with related facilities including a water treatment plant, a 100MW power plant along with urea storage, loading and unloading facilities.

Also to be part of the facility will be a closed conveyer to transport the urea, 7km directly to the Pilbara Ports Authority for shipping to local and offshore markets. Every year 50 to 100 shiploads are expected to take place.

Clough CEO and managing director Peter Bennett said: “We are very excited to be part of this milestone project.

“During the construction phase, this world-class facility will create about 2,000 jobs in Western Australia and will be an important development for the Australian resources industry, significantly reducing the nation's reliance on fertilizer imports.

“Saipem has an enviable track record in delivering Urea projects around the world that when combined with Clough’s Australian engineering and construction expertise, creates a capability that is unparalleled.”

Perdaman will invest a total of AUD4.5bn ($3.12bn) for the urea plant’s development, which will transform natural gas into urea. The company had also secured the supply of natural gas for 20 years from Woodside in 2018. Final investment decision for the project could be taken next year.

The Australian company also stated that the urea project will provide a major boost to the local economy by generating about 2,000 jobs during the three-year construction phase and when completed, about 200 permanent jobs in Karratha will be created.

When operational, the urea plant will produce two million tonnes of urea annually, generating more than AUD850m ($589m) per annum in export earnings for the Western Australian region.

Perdaman chairman Vikas Rambal said: “The company is pleased to be part of job creation for the state and is privileged to be the part of the manufacturing initiative project in WA again.

“The coronavirus pandemic has taught us an important lesson about the food security for our society and our over-reliance on imports.”

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Artist’s rendering of Perdaman’s urea plant to be located in Karratha, Australia. (Credit: Clough.)

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