Amec Foster Wheeler JV Enters Australian Petrochemicals Market With Major Ammonia Facilities Contract

Announced Date :  Aug 10, 2017


Clough AMEC has won a landmark contract to provide maintenance services to ammonia facilities in Western Australia that supply international and domestic fertiliser markets and explosives used in the mining industry.
The five-year deal, with an option to extend to 2027, is Clough AMEC’s first entry into Australia’s petrochemicals sector.

The JV will provide maintenance planning support and routine maintenance services and shutdowns, as well as the supply of management, tools and systems, to the Yara Pilbara Fertilisers Pty Ltd (YPFPL) and Yara Pilbara Nitrates PTY (YPNPL) facilities located near Karratha.

Owned by Yara Pilbara Holdings Ltd., YPFPL is one of the world's largest ammonia production facilities, with a capability of approximately 850,000 metric tons annually. Output from the plant is sold in the Australian domestic market, as well as South-East Asian market such as Indonesia and Korea. Liquid ammonia is a vital raw material for the manufacture of fertilisers.

Adjacent to this is YPNPL, a technical ammonium nitrate facility opened last year that cost AUS $800m (£487m) to build. This plant produces ammonium nitrate used for explosives in the domestic mining market.

For Amec Foster Wheeler, this win supports the Company’s strategy to leverage its skills into adjacent sectors, and grow its chemicals business by expanding its services across the full asset lifecycle. The contract also offers a significant opportunity for additional technical and implementation support to Yara Pilbara’s fertiliser operations and future capital projects.

Nigel Hudson, Clough AMEC Director said: "Since the JV was formed 13 years ago, Clough AMEC has built an impressive track record for delivering operations, maintenance and shutdown success in the oil and gas sector in Australasia. This entry into the Australian petrochemicals sector recognises our success in delivering cost-effective solutions for our customers. It strengthens our position as the asset support services contractor of choice."

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