Conditional support has been provided by the Western Australian Government for the development of a new gas manufacturing plant on the Burrup Peninsula.

The $4.6 billion Perdaman Urea project proposes a new manufacturing plant in the Burrup Strategic Industrial Area that would transform natural gas into urea.

The project would create an estimated 2,500 jobs during construction and 300 permanent residential jobs during operation, and is helping to underpin development of the Scarborough gas field, with a gas supply agreement in place between Woodside and Perdaman.

Western Australian Regional Development Minister, Alannah MacTiernan, said, “This will be the first new gas manufacturing project in the Pilbara for 15 years. 

“The Perdaman Urea project would create thousands of jobs in construction and around 300 Karratha-based jobs during operations, and will help to diversify the Pilbara economy.

“Our government’s support is subject to a number of stringent conditions, but will help to give this job-creating project the best chance of success.”

The project also supports the state’s Renewable Hydrogen Strategy by establishing an ammonia-based industry in the Pilbara, and expanding access to water by developing extra capacity on the existing water infrastructure on the Burrup – a critical input for the production of renewable hydrogen.

The State Government has provided $35.5 million for road relocation costs, and for detailed design of a new Dampier Cargo Wharf and upgrades to seawater supply infrastructure.

The State Government has also provided conditional funding support towards common user infrastructure including:

  • Upgrading the existing seawater supply scheme in the Burrup Strategic Industrial Area
  • Expansion of the Dampier Cargo Wharf 

Any State Government financial contribution is subject to a number of conditions, including the project receiving a Northern Australia Infrastructure Facility loan, the project reaching financial close, all statutory and regulatory approvals being met, and the project securing offtake agreements.

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