SNC-Lavalin (TSX:SNC) today announces that it has signed an agreement with Perdaman Chemicals and Fertilisers Pty Ltd (Perdaman) for the continued development of the two million ton per annum (Mtpa) Urea fertiliser plant located in Western Australia. Once the project is approved, its estimated capital cost is $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 fertiliser 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 Q1 2019, phase three would begin on the delivery of Urea fertiliser 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 leading technology partners Haldor Topsoe’s using their new SynCOR™ technology for the ammonia plant, and Stamicarbon utilizing their LAUNCH MELT™ Pool Condenser Design for the urea production. Both technologies are low-emissions technologies that will help Australia meet its 2030 emissions reduction target for a more sustainable future.
“We are very happy to be partnering with SNC-Lavalin who are a world class engineering and construction management company,” said Mr. 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 two Mtpa 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 AUD$4 billion to develop the plant that will utilize local natural gas for fertiliser production, using innovative and low-emissions technologies. This project will put WA on the World map as a manufacturing hub for finished products for Asian market.
Founded in 1911, SNC-Lavalin is a global fully integrated professional services and project management company and a major player in the ownership of infrastructure. From offices around the world, SNC-Lavalin's employees are proud to build what matters. Our teams provide comprehensive end-to-end project solutions – including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance – to clients across oil and gas, mining and metallurgy, infrastructure, clean power, nuclear and EDPM (engineering design and project management). On July 3, 2017, SNC-Lavalin acquired Atkins, one of the world’s most respected design, engineering and project management consultancies, which has been integrated into our sectors. www.snclavalin.com