Australia: Gas Supply Perdaman, Woodside Sign GSPA Agreement for Perdaman’s Urea Plant

Under the contract, Woodside will be responsible for supplying domestic gas to Perdaman’s urea plant which is capable of producing two million tonne per annum.

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Australia – Perdaman Chemicals and Fertilisers (Perdaman) and Woodside Energy (Woodside) recently signed a historic Gas Sale and Purchase Agreement (GSPA) for the supply of domestic gas to the proposed Perdaman urea plant. Located on the Burrup Peninsula in Karratha, Woodside will be supplying the gas for a period of 20 years which can also be extended to 25 years.

Perdaman’s two million tonne per annum urea plant has been awarded the ‘Project of State Significance’ status by the WA State Government. The State will be responsible for amalgamating two sites that have been reserved for the plant on the Burrup Peninsula. It will also work together with Perdaman’s technical team to carry out the project.

Perdaman has already invested 175 million dollars into the project. The plant is expected to create 2,000 plus direct jobs during the three-year construction phase. It also plans to recruit a permanent staff of 200 people to operate the plant on a non-fifo basis in Karratha. On completion, the plant will be Australia’s first urea export project to cater to the growing demands of the Asia Pacific region. The Perdaman Project will bring in a net present value of 15 billion dollars into the local economy during the life cycle of the plant.

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