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ATM News Network: Diversified conglomerate LandT has announced securing a substantial contract from Perdaman Chemicals and Fertilisers to develop a massive 2.3 million tonne urea plant in Australia. Upon completion, this plant is set to become not only Australia's largest urea facility but also one of the worlds largest, according to the company.
The exact value of the deal remains undisclosed; however, LandT referred to it as a "significant order." Generally, a "significant order" entails a value ranging between Rs 1,000 and Rs 2,500 crore.
Addressing the secrecy around contract details, LandT Group Chairman and Managing Director-Designate, SN Subrahmanyan, emphasized that the company follows a policy of not revealing commercial specifics, considering the potential fluctuations in value until completion. "The contract value can change by the time of completion," he explained.
The contract was awarded by Italian firm Saipem and Clough, the Engineering, Procurement, and Construction (EPC) contractor for Perdaman, an Indian-owned company.
LandT's Energy Hydrocarbon contract encompasses the fabrication and supply of process and piperack modules for the 2.3 million tonnes per annum urea plant, along with a 1.3 million tonnes ammonia unit. Furthermore, LandT Heavy Engineering has secured orders for packaging the urea equipment for the project.
The plant will be situated in the Burrup Peninsula, Western Australia, and upon completion, it will not only hold the distinction of being Australia's largest urea plant but also one of the largest globally, stated Perdaman Chairman Vikas Rambal.
Subrahmanyan highlighted that the uniqueness of the plant lies in being the largest modularized and pre-fabricated unit in the global fertilizer industry. The construction will occur at LandT's yards in Hazira and Kattupalli near Chennai, before the components are transported to Australia for final assembly.
Explaining the rationale behind the modular approach, Subrahmanyan underlined the need to counter the challenges posed by high labor costs and scarcity. He expressed confidence in this approach becoming the industry standard moving forward, citing its efficiency even in the face of labor shortages.
Responding to inquiries about cost savings, Subrahmanyan indicated that if the work were to be done in Australia, the contract value would inflate by at least three times due to labor and material expenses.
The contract encompasses the fabrication of around 50,000 tonnes of modules at LandT's Kattupalli facility, set to be delivered within 32 months. LandT Heavy Engineering has also secured multiple orders for the comprehensive urea equipment package, including urea reactors, carbamate separators, carbamate condensers, and urea strippers. These units will be custom-built at LandT's Hazira facility.
Subramanian Sarma, Senior Executive Vice-President for Energy at LandT, disclosed that around 1,160 tonnes of equipment, forming a part of the contract, will be delivered within 25 months. Despite an annual consumption of approximately 2.5 million tonnes of urea in Australia, the country does not manufacture this compound, clarified Rambal.
Perdaman, based in Western Australia, boasts investments across diverse sectors such as fertilizers, shopping centers, and pharmaceutical companies.
