The $3.5 billion urea manufacturing plant proposed for construction at Collie, 200 kilometres south east of Perth, Western Australia, is now calling for tenders for specific work and supply packages
Using innovative and clean coal gasification technology, the plant will transform sub-bituminous coal into 2 million tonnes per annum of urea.
Perdaman has signed a binding Heads of Agreement for the EPC (Engineering, Procurement and Construction) work with Samsung Engineering of Korea. Samsung will act as the lead contractor for the EPC work, which consists of the gasification island, which is central to the conversion of coal to hydrogen rich gas, the product island, which converts gas to urea, and the various utilities. The contract comprises Phase 1 work up to financial close for the project during the second quarter of 2010, and for Phase 2 construction work scheduled to start later in 2010. According to Perdaman, Samsung are committed to the Company’s Australian industry participation and local community objectives and will be establishing operations within Australia prior to the commencement of construction.
Perdaman have previously stated that they will seek to source products and services from Collie and the surrounding Peel region where possible. In addition, it has always been expected that the workforce employed on the project will live in the surrounding local communities including Collie and the City of Bunbury.
PROJECT TIMELINE
March 2009 – Project announced
April 2009 – Commenced community consultation
March 2009 to December 2009 – obtaining permitting and environmental approvals
June 2009 to January 2012 – engineering
February 2010 – construction contract arrangements are finalised
April 2010 – Financial close
August 2010 – Field construction starts
April 2013 – mechanical completion
June 2013 – Start up
November 2013 – full production
The next key date to signal employment opportunities will be February 2010, when it is expected that the major construction contract is awarded.