Clough and Saipem, in a 50/50 joint venture, have been chosen for the development of Perdaman Industries’ urea plant on the Burrup Peninsula approximately eight kilometers from Dampier and twenty kilometers northwest of Karratha on the north-west coastline of Western Australia.
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The Joint Venture’s scope of work includes engineering, supply of equipment and materials, construction, pre-commissioning and commissioning for the execution of the urea plant with a capacity of 2.14 million tonnes of urea per annum. The scope also includes EPC for all site civils, urea handling and storage, and loading and unloading facilities, as well as a water treatment plant, a power plant more than (100MW) and site buildings. A closed conveyer will transport the urea 7 kilometers directly to the Pilbara Ports Authority for shipping to local and offshore markets, with 50 to 100 shiploads expected per year. The overall value of the contract is around USD$2.4B.

Peter Bennett, Clough CEO and Managing Director said “We are very excited to announce that we have reached the agreement to deliver this iconic project that will be one of the largest and lower emissions urea plants in the world. In addition, this is an important development for the Australian resources industry, significantly reducing the nations reliance on fertilizer imports and will set a standard for low-emissions and high efficiency technologies.”

Stefano Cao, Saipem’s CEO, commented: “We have reached an agreement for a strategic EPC contract in Australia. We congratulate Perdaman Industries for the achievement, and we are grateful for the confidence demonstrated towards our Saipem-Clough JV. This project – one of the largest and environmentally efficient urea plants in the world – will strengthen our leadership role in the gas monetization market and will contribute to further diversify our geographical footprint in a Country leading on decarbonization”.

This award is subject to Full Notice to Proceed to be issued by Perdaman Industries. The Project has been strongly supported by The Western Australian Government, by giving it a state significant project status reflecting the major boost it will provide to the Western Australian economy, generating an average of 2000 jobs during the three-year construction phase and 200 permanent jobs during the operation phase.