King & Wood Mallesons (KWM) has advised Incitec Pivot Limited (IPL) on a 20-year offtake agreement with Perdaman Chemicals and Fertilisers Pty Ltd (Perdaman) for the purchase of urea from Perdaman’s proposed urea plant in the Burrup Peninsula in Western Australia.
The Offtake Agreement includes a commitment to obtain approximately 2.3 million tonnes per annum of granular urea fertilizer from Perdaman’s proposed Karratha urea plant. The investment will create a large amount of additional capacity in Australia’s domestic urea production capability, adding valuable domestic supply chain resilience to a critical component of Australia’s food production system.
The KWM team advising IPL was led by Partners Chris Dynon, Diana Nicholson and Will Heath, and supported by Senior Associate Shubho Mukherjee.
Commenting on the deal, Chris Dynon said:
“Congratulations to IPL on successfully securing this significant Offtake Agreement with Perdaman.”
“It was a pleasure to work with the IPL team on this important domestic manufacturing transaction. The deal will ultimately boost Australia’s domestic urea production capability and means that supply will come from one of the world’s most energy efficient plants using low emissions technology.”
The Offtake Agreement is expected to commence after the plant is completed, at the end of 2027.
KWM continues to advise our clients on market-leading energy transactions which support Australia’s energy transition. Recent deals include EMR Capital on its joint venture with KoBold Metals, Canberra’s Big Battery and AEMO Services on its inaugural tender for long-term energy services.
