Perdaman Chemicals and Fertilisers Pty Ltd and Woodside Energy Limited have signed a historic Gas Sale and Purchase Agreement (GSPA) for the supply of pipeline gas to the proposed Perdaman Urea Plant on the Burrup Peninsula in Karratha for a period of 20 years, with the option to extend to 25 years.

The 2 million tonnes per annum (tpa) Urea Plant will be Australia’s first urea export project supplying the demand in the growing Asia Pacific region. It is expected to create in excess of 2,000 direct jobs during the project’s three-year construction phase and hold a permanent staff of 200 to operate the plant on a non-FIFO basis in Karratha.

The GSPA is for a quantity of approximately 125 terajoules (TJ) of gas per day for use in the proposed urea plant. Gas will be supplied from Woodside’s portfolio and primarily sourced from the company’s proposed Scarborough development.

The agreement is subject to a number of conditions and supply will commence between 2023 and 2025.

Woodside CEO, Peter Coleman, welcomed the finalisation of the GSPA and said that it demonstrated the company’s commitment to delivering domestic gas to further support investment in the Pilbara region and create local jobs.

“This is a significant domestic gas sale and represents another step towards the delivery of the proposed Burrup Hub. The realisation of our vision for the hub will ensure that the world-class North West Shelf and Pluto facilities on the Burrup Peninsula are positioned to meet both domestic gas and global LNG demand for decades to come,” Mr Coleman said.

Perdaman’s Chairman, Vikas Rambal also commented: “this is a landmark gas contract between two Western Australian companies, Perdaman and Woodside, and importantly kickstarts a new wave of local manufacturing in the State creating local jobs and supporting the local community on the Burrup”.