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Perdaman and Incitec Pivot sign urea offtake agreement

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World Fertilizer,

Incitec Pivot Limited has announced that its wholly-owned subsidiary, Incitec Fertilizers Pty Ltd (IPF), has entered into a 20-year off-take agreement with Perdaman Chemicals and Fertilisers Pty Ltd (Perdaman) with a commitment to take up to 2.3 million tpy of granular urea fertilizer from Perdaman’s proposed urea plant at Karratha in Western Australia.

The AUS$4.3 billion Karratha urea plant in Western Australia is scheduled to start production in 4Q25, with construction due to begin in 1Q22. It will be Australia’s first world-scale urea plant, converting Australian gas into urea.

The offtake agreement is subject to the satisfaction of certain conditions precedent which must be satisfied by no later than a date which is 18 months from execution of the agreement. The primary condition precedent relates to Perdaman obtaining financing for construction of the new plant (which in turn depends on Perdaman finalising gas supply arrangements and obtaining various environmental and other regulatory approvals for the plant).

IPL Managing Director & CEO, Jeanne Johns, said: “The investment by Perdaman in a new, world-scale plant will make it one of the most energy-efficient plants in the world utilising low emissions technology. ”We are pleased to support such a significant domestic manufacturing project that will use Australian gas to produce urea fertilizer, essential for our Australian and international agricultural markets.”

Perdaman Chemicals and Fertilisers’s Chairman Vikas Rambal, said: “The Karratha urea plant has the potential to make Australia a major player in the global urea market.”

Read the latest issue of World Fertilizer in full for free: April 2021

The April issue of World Fertilizer begins with a regional report that examines the opportunities and challenges currently facing Latin America’s fertilizer industry. The remainder of the issue is dedicated to a range of technical articles covering ammonia, blending and bagging, plant design, fertilizer cargo measurement and fertilizer storage. Our World Review of fertilizer projects in Africa and the Middle East, Asia Pacific, Europe and CIS and the Americas rounds off the issue.

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Fertilizer project news Urea news