All conditions relating to Woodside’s long-term gas sale and purchase agreement (GSPA) with Perdaman Chemicals and Fertilisers Pty Ltd have been satisfied.
This follows a positive final investment decision by Perdaman on its 2.3 million tonne per annum urea plant near Karratha in the Pilbara region of Western Australia.
Pipeline gas sold under the GSPA is for use at the plant, which will produce an important fertiliser feedstock in support of both domestic and international agricultural users. Supply under the GSPA is for approximately 130 Terajoules per day (TJ/day) of gas over a term of 20 years, commencing upon commissioning of the plant expected in either 2026 or 2027.
Gas will be supplied from Woodside’s portfolio and sourced primarily from the Scarborough project, which is currently under development. Scarborough will add up to 225 TJ/day of new domestic gas supply into Western Australia from 2026.
Woodside CEO Meg O’Neill said the GSPA becoming unconditional demonstrated Woodside’s commitment to providing gas to the Western Australian domestic market and highlighted the significant local benefits from the Scarborough project.
“Gas is an essential energy source and feedstock for power generation and industry in Western Australia, and we are pleased to continue supporting local manufacturing industries that provide jobs and in this case support food production locally and globally,” she said.
Perdaman Chairman Vikas Rambal said the company had recently completed Financial Close in relation to its proposed urea plant. He said the project would generate more than 2000 construction jobs and 200 direct and indirect operational jobs, supporting further community and economic development in Karratha and the Pilbara region.
“Woodside has taken a huge step in supporting Perdaman, a local Western Australian company, and has helped to create Australia’s largest downstream manufacturing project to date. Perdaman’s Board is greatly appreciative of Woodside’s support throughout the project development,” he said.
The GSPA becoming unconditional follows a memorandum of understanding signed between Woodside and Perdaman in April 2018 and subsequent execution of the GSPA in November of that year.