Oil and Gas News

Clough, Saipem awarded Perdaman WA project

Clough and Saipem have been selected as the engineering, procurement and construction (EPC) contractors for the development of Perdaman Industries’ $4.5 billion urea plant on the Burrup Peninsula, Western Australia.

The joint venture’s scope of work includes engineering, construction, pre-commissioning and commissioning of the ammonia and urea plant, including EPC for all site civils, process plant, utilities, urea handling, storage and loadout, storage facilities and site buildings.

Perdaman is investing $4.5 billion to develop the plant, which will transform natural gas into urea, a widely used form of fertiliser for production of food for the future generation. 

In addition, the company has secured natural gas for 20 years from Woodside under a gas supply agreement signed in November 2018.

As part of the gas supply agreement, Woodside will supply 125 terajoules (TJ) of gas per day, which is set to commence between 2023 and 2025.

However, Woodside outlined in its 2018 annual report that the agreement would be underpinned by the Scarborough development.

Perdaman’s 2 million tonne per annum urea plant is set to create 2000 direct jobs during the three-year construction phase and have a permanent staff of 200 to operate the plant on a non-FIFO basis in Karratha.

The facility also includes a water treatment plant, a power plant (100MW), as well as urea storage, loading and unloading facilities.

A closed conveyer will transport the urea 7km directly to the Pilbara Ports Authority for shipping to local and offshore markets, with 50-100 shiploads expected per year.

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