Engineering contracts for large-scale urea production facility
Piper Alderman assisted Leigh Creek Energy with the negotiation of a feasibility study, front end engineering and design and turnkey fixed price engineering, procurement, construction and commissioning contract for a 1mtpa urea production facility in South Australia.
Leigh Creek Energy Limited was an ASX-listed company focused on developing its Leigh Creek Urea Project to produce low-cost nitrogen-based fertiliser for key agriculture markets.
The Feasibility Study, Front End Engineering and Design and Fixed Price Turnkey Engineering, Procurement, Construction, and Commissioning contract was awarded to DL E&C Co. They will partner with Leigh Creek Energy to carry out a Bankable Feasibility Study and the Front-End Engineering and Design for the Project. Once Leigh Creek Energy made a final investment decision for the Project, the contracted firm proceeded with carrying out the Engineering, Procurement, Construction, and Commissioning of the urea production facility for a fixed turnkey price presently estimated to be in the vicinity of US$1.6 billion. In addition, DL E&C Co. agreed to assist Leigh Creek Energy with introductions to Korean export credit agencies and support, in conjunction with Leigh Creek Energy’s financial advisers, in seeking funding for the Project.
Piper Alderman assisted Leigh Creek Energy with negotiating and finalizing the contract for eight syngas-operated electrical generators required for the Project’s syngas production and collection phase. In addition, Piper Alderman continued to work with Leigh Creek Energy on various possible financing transactions connected with the Project.
Given Piper Alderman’s experience in the Energy & Resources sector, Piper Alderman was well placed to provide holistic advice on the contract negotiations and other matters in progress.