CONSTRUCTION has started on a $6 billion urea manufacturing project in the Pilbara, near the port of Dampier.
The Perdaman project is to convert natural gas from Woodside’s Scarborough Gas Project into an estimated 2.3 million tonnes of urea per annum. Australia currently imports around 2.4 million tonnes of urea each year.
The federal and Western Australian governments welcomed the milestone as it follows a final investment decision last week.
The state government said it has executed agreements that will deliver more than $300 million in funding for the development of the project and the region.
This includes the landmark $255 million Northern Australia Infrastructure Facility loans secured for the Pilbara Ports Authority and Water Corporation.
The two loans were announced in February last year. As part of the investment, $159 million was allocated to Pilbara Ports Authority for a new multi-user wharf and facilities at Port of Dampier.
The state government has committed more than $50 million in additional funding to support early design works and upgrades to public infrastructure, including a detailed design of the new Dampier Cargo Wharf.
WA premier Mark McGowan said developments like the Perdaman Urea Project will deliver decades of economic benefits for the state and the region.
“This important project represents a significant investment in the Pilbara and WA, underlining the region’s role as the engine room of Australia’s economy,” he said.
“It is estimated the project will create thousands of jobs within the state and generate a total revenue of $77 billion over its life.”
WA state development, jobs and trade minister Roger Cook said the urea produced at the Perdaman’s Pilbara plant would be exported around the world and used in sectors such as agriculture.
“We know that Perdaman has worked closely with the Murujuga Aboriginal Corporation to ensure that industry can co-exist and thrive alongside the cultural values of the Traditional Owners,” he said.
“Infrastructure upgrades to facilitate the project will have flow on economic benefits for the State, including the potential development of other downstream processing and hydrogen projects.”
Resources and Northern Australia minister Madeleine King highlighted the use of urea as a form of fertiliser for food production.
“This $6 billion urea project will unlock significant and strategic benefits locally, nationally and globally,” she said.
“It will provide fertiliser for Australian farmers and will support food security throughout the region and beyond. Ultimately it will help feed a great many people.”
And Pilbara MLA Kevin Michel welcomed the project as the first new gas manufacturing project in the Pilbara for more than a decade.
“The project will deliver hundreds of locally-based, high quality jobs – strengthening our regional economy and supporting our local community.”
Located 20 kilometres north-west of Karratha, it is estimated the Perdaman Urea Project will create 2500 jobs during construction and 200 operational jobs.
