The Northern Infrastructure Facility (NAIF) has committed $255 million for infrastructure upgrades to support the Perdaman Urea Project.

The project, located 20km north-west of Karratha, will convert Western Australian liquefied natural gas (LNG) into about two million tonnes of urea per year. 

Urea is a widely used form of fertiliser for food production.

It is estimated the Perdaman project will create around 2,500 jobs during construction and 200 operational jobs.

The two loans are the first NAIF investments into Western Australian Government entities and include:

  • $160 million to the Pilbara Ports Authority for a new multi-user wharf and facilities at the Port of Dampier
  • $95 million to the Water Corporation for the expansion of the Burrup seawater supply and brine disposal scheme that will connect to the Perdaman Urea Plant, once built

Western Australian State Development, Jobs and Trade Minister, Roger Cook, said, “Recent international supply chain issues have highlighted just how important urea is to industry sectors such as agriculture and transport.

“Western Australia has the potential to supply these sectors with the urea they need.

“As the first new gas manufacturing project in the Pilbara for more than a decade, the Perdaman Urea Project will play a role in helping diversify Western Australia’s economy and create local jobs.”

Western Australian Ports Minister, Rita Saffioti, said the investment would open up further opportunities for the region.

“The development of a new multi-user wharf at the Port of Dampier will maximise the use of this important piece of infrastructure by facilitating the Perdaman Urea Project, as well as accommodating bulk carriers, cruise ships, and general cargo vessels,” Ms Saffioti said.

“This investment in the new wharf will also encourage trade diversification by opening up access to worldwide markets for urea from the Perdaman Project.”

The NAIF loans build on Western Australian Government support for the project, which has provided $47.6 million for road relocation costs, the detailed design of a new Dampier Cargo Wharf and upgrades to seawater supply infrastructure.

Any Western Australian Government financial contribution is subject to a number of conditions, including the project reaching financial close and all statutory and regulatory approvals being met.

Western Australian Water Minister, Dave Kelly, said, “The Western Australian Government has committed to upgrading the common-user infrastructure needed to support the Perdaman Urea Project. 

“With additional financial support from the WA Government, the Water Corporation will use the $95 million NAIF loan to expand the Burrup seawater supply and brine disposal scheme, which will also service the operation of the Perdaman Urea Plant.”

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