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    Oz Santos, Perdaman Sign HoA

Summary

Santos and Perdaman have signed a heads of agreement for the further study and design of Perdaman's new ammonia production facility using Narrabri natural gas.

by: Shardul Sharma

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Oz Santos, Perdaman Sign HoA

Santos and Perdaman have signed a heads of agreement for the further study and design of Perdaman's new ammonia production facility using Narrabri natural gas, Santos said August 2.

“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,” Santos said.

In February Santos and Perdaman signed a non-binding agreement for supply 14.5 petajoules/year (387mn m3/year) of gas for 20 years, subject to a final investment decision for the Narrabri project.

The study 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.

The Narrabri project is currently being assessed by the New South Wales Department of Planning ahead of a decision by the Independent Planning Commission.