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Perdaman and Woodside sign gas deal for $4.5 billion urea plant

A $4.5 billion fertiliser plant in the Pilbara that will create more than 2000 construction jobs moved closer to reality today with Perdaman signing up for 20 years of gas from Woodside.

For the project to go-ahead Perdaman must finalise agreements with customers for the two million tonnes of urea to be produced a year.

Perdaman chairman Vikas Rambal said he looked forward to starting work on the project in the near future.

“This is a landmark gas contract between two Western Australian companies, Perdaman and Woodside, and importantly kickstarts a new wave of local manufacturing in the State creating local jobs and supporting the local community on the Burrup,” he said.

The Perth-based industrial conglomerate, that has already spent $240 million on the project, needs to bring partners into the project, finish financing arrangements and gain government approvals.

Mr Rambal said in May that subject to approvals construction of the plant would start in the first quarter of 2020. Read more…

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