Santos and Perdaman signed a heads of agreement for the further study and design of Perdaman’s new ammonia production facility in Australia that will look to use Narrabri natural gas.
In February Santos and Perdaman signed a non-binding agreement for the supply of 14.5PJ of natural gas per annum over 20 years, subject to a final investment decision for Santos’ Narrabri Gas Project.
This Pre-FEED (front-end engineering and design) study is the next step in the development of a chemical and fertiliser facility near Narrabri, which will use appraisal and early development gas.
It will also further define hybrid power facility options, a combination of gas-fired power generation integrated with renewable power generation to provide electricity to both the Narrabri Gas Project and the ammonium nitrate plant.
Santos Managing Director and CEO Kevin Gallagher and Perdaman Group’s founding Chairman and Managing Director, Vikas Rambal, signed the Heads of Agreement in Narrabri.
“The project will generate substantial economic revenue and employment opportunities for New South Wales, Narrabri and the surrounding region,” Gallagher said.
“The Narrabri Gas Project could produce enough gas to supply up to half NSW’s needs, with more and more manufacturers supporting it because they recognise the advantages of having a reliable and competitively-priced source of gas in NSW.”
The Narrabri Gas Project is currently being assessed by the NSW Department of Planning ahead of a decision by the Independent Planning Commission.