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Clough JV wins EPC contract for $4.5bn Urea Project in WA


urea-project-karratha (cr: Clough)
Posted by Monica Gameng

Perdaman Industries has selected the CloughSaipem joint venture as the engineering, procurement and construction (EPC) contractor for the $4.5 billion Urea Project near Karratha, Western Australia.

The joint venture will be undertaking engineering, construction, pre-commissioning and commissioning of the ammonia and urea plant. Scope of works will include EPC of all civil works, process plant, utilities, urea handling, storage and loadout, storage facilities and site infrastructures.

“We are very excited to be part of this milestone project. During the construction phase, this world class facility will create about 2,000 jobs in Western Australia and will be an important development for the Australian resources industry, significantly reducing the nations reliance on fertiliser imports.

“Saipem has an enviable track record in delivering Urea projects around the world that when combined with Clough’s Australian engineering and construction expertise, creates a capability that is unparalleled,” Clough CEO and Managing Director Peter Bennett said.

The Urea Project is going to be located in the Burrup Peninsula, about 8 kilometres from Dampier and 25 kilometres northwest of Karratha.

The multi-billion-dollar project will deliver a urea fertiliser plant as well as related facilities that will have a capacity of 2 million tonnes of urea a year. This facility will include a water treatment plant; a 100MW power plant; and urea storage, loading and unloading facilities.

A closed conveyor will be utilised to transport the urea approximately 7 kilometres directly to the Pilbara Port Authority for local and offshore shipping. About 50 to 100 shiploads are expected to be shipped annually.

“Partnering with a company like Clough, that has been delivering project for more than a century is very important to us.

“This joint venture looks forward to bringing one of the largest urea projects in the world into production for Perdaman,” Saipem Onshore APAC Area Manager Alessandro Tattini said.

The Western Australian Government strongly supports this project and has given it a state significant project status due to its capability to provide a major boost in the local economy.

In addition to the 2,000 jobs that it will generate over a three-year construction phase, the Urea Project will also support up to 200 permanent jobs once operational. The Urea Project is also expected to generate over $850 million a year in export earnings for Western Australia.

“The company is pleased to be part of job creation for the state and is privileged to be the part of the manufacturing initiative project in WA again,” Perdaman Chairman Vikas Rambal said.

Urea is a byproduct of natural gas – which will be supplied by Woodside for 20 years – and it is a widely used form of fertiliser to produce “food for the future generation”.

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Source: Perdaman Industries (1, 2); Clough

Monica Gameng

Monica Gameng

As PlantMiner's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1000 posts. She truly is an industry expert. Monica's passion for educating and inspiring readers saw the PlantMiner blog recognised by Feedspot as one of the Best Australian Construction Blogs in 2018 and 2019. PlantMiner is Australia's largest online construction marketplace. Sign up as a vendor to find and engage with civil and commercial contractors across Australia. Alternatively, if you're looking for plant and equipment you can compare equipment and subcontractor quotes from vendors near you in just a few steps.