Karratha urea plant project, Australia – update

Name of the Project
Karratha urea plant project.
Location
Burrup Strategic Industrial Area, on the Burrup Peninsula, in Western Australia.
Project Owner/s
Perdaman Industries Chemicals & Fertilisers.
Project Description
The proposed project will transform natural gas into urea, which is used as a form of fertiliser for food production.
The project entails the construction of a two-million-tonne-a-year urea plant, which will use local natural gas for fertiliser production using innovative and low-emissions technologies.
Perdaman has secured 20 years’ worth of natural gas supply from oil and gas major Woodside.
Potential Job Creation
The project is expected to create about 2 000 jobs during the three-year construction phase and 200 permanent jobs in Karratha.
Capital Expenditure
The project will cost about A$4.5-billion to implement.
Planned Start/End Date
Perdaman is hoping to achieve full production at the project by the second quarter of 2025.
Latest Developments
Federal Environment Minister Sussan Ley has reportedly requested privately held Perdaman to temporarily cease works on its Karratha urea project while government considers concerns raised by Traditional Owners around potential damage to World Heritage-nominated Aboriginal rock art.
The Burrup Peninsula contains what is widely considered the world’s oldest and biggest art gallery, comprising more than one-million pieces of rock art, carved into the rock over about 40 000 years.
The rock art has been found to be highly sensitive to the emissions produced by heavy industry and independent scientific studies have established an ongoing pattern of degradation of the surface rock, into which the many images are carved, according to a statement by the Conservation Council of Western Australia.
Traditional Owners have requested that the Minister use emergency powers to protect the rock art and other sacred sites from further encroachment by heavy industry.
According to news publication WAToday, Ley requested that Perdaman ensures it does not disturb ancient heritage sites, including three rock art sites that it has permission to remove under state legislation, while the Department of Environment responds to the concerns raised by Traditional Owners.
The Karratha project was granted major project status by the Australian government in 2021, and has also been granted significant project status by the Western Australian government.
Key Contracts, Suppliers and Consultants
SNC-Lavalin (construction contract); and Clough and Saipem (engineering, procurement and construction – lead contractor).
Contact Details for Project Information
Perdaman Chemicals & Fertilisers, tel +61 8 9429 5111, fax +61 8 9429 5100 or email info@perdaman.com.au.
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