Australian LNG player Santos and Perdaman signed a heads of agreement for the further study and design of Perdaman’s new ammonia production facility using 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 fertilizer 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.