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SNC-Lavalin signs agreement with Perdaman for development of Western Australia urea plant

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World Fertilizer,

SNC-Lavalin has signed an agreement with Perdaman Chemicals and Fertilisers Pty Ltd for the continued development of the 2 million tpy urea fertilizer plant located in Western Australia. Once the project is approved, its estimated capital cost is CAN$4.3 billion.

The contract forms an exclusive three-phase agreement between SNC-Lavalin and Perdaman who will form an integrated project management team of dedicated personnel to manage various aspects of the overall project delivery. SNC-Lavalin has completed phase one, which included signing of the Heads of Agreement. The company has now begun phase two and will deliver an open book full-cost estimate and design for the delivery of the urea fertilizer plant and related facilities, including a water treatment plant, a power plant, as well as urea storage, loading and unloading facilities. Upon successful completion and approval of phase two, expected in 1Q19, phase three would begin on the delivery of the urea plant subject to final investment decision.

“We look forward to continuing this long-term relationship with Perdaman and supporting them with their expansion plans in Australia. To be a part of the delivery of this plant demonstrates the confidence our clients have in our ability to deliver large scale complex projects both in Australia and globally,“ said Christian Brown, President, Oil & Gas, SNC-Lavalin. “This is an exciting project that allows us to leverage the experience we have gained over the last 40 years working in Australia, as well as our expanded engineering and delivery capabilities following the acquisition of Atkins in 2017.”

SNC-Lavalin will work with partners Haldor Topsoe, using their new SynCOR™ technology for the ammonia plant, and Stamicarbon utilising their LAUNCH MELT™ Pool Condenser Design for the urea production. Both technologies are low-emission.

“We are very happy to be partnering with SNC-Lavalin who are a world class engineering and construction management company,” said Vikas Rambal, Chairman and Managing Director of Perdaman. “With a strong culture of collaboration and a proven track record delivering projects across multiple sectors in Australia; oil and gas, mining and metallurgy, clean power and infrastructure, we are confident that their knowledge and client-focused solutions are the best fit for this project.”

Perdaman’s planned urea plant, called project Destiny, will be located within the Burrup Strategic Industrial Area on the Burrup Peninsula, approximately 10 km from Dampier and 20 km north-west of Karratha on the northwest coastline of Western Australia. Perdaman will invest a total of AUS$4 billion to develop the plant that will utilise local natural gas for fertilizer production, using innovative and low-emissions technologies.

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Fertilizer project news Urea news