11 Jul 2006

Plans to build world's largest ammonia and urea plant in Papua New Guinea

9:01 am on 11 July 2006

Oil Search Ltd has signed a deal to supply natural gas to an Indian group eager to build the world's largest ammonia and urea fertiliser complex in Port Moresby.

The memorandum of understanding with Oswal Projects is for supply of 50 petajoules of gas annually for a plant that will produce 2,600 tonnes a day of ammonia and 4,500 tonnes a day of urea fertiliser.

Its estimated the plant will cost around 750 million US dollars to build.

Subject to completion of a comprehensive feasibility study, gas sales are targeted to start in 2010.