The project had a letter of agreement with the North West Shelf partners for the purchase of 71.5tj/d, but the increase was expected.

The partners in the project - Canadian international fertilisers giant Agrium, project originator Plenty River Corporation, Thiess and Krupp Uhde - fronted a Perth media conference today to introduce Agrium's executive president and chief operations officer, Mike Wilson.

Wilson confirmed that the bankable feasibility study for the project is due by the end of this year. The consortium is hoping to get a financial close by the second quarter of 2003. If all goes to plan, after a 32-month construction and commissioning program, first production from the plant is scheduled in late 2005.

The plant is expected to produce 2300 tonnes per day of ammonia and 3500 tonnes per day of urea. Annual output will be 1.2 million tonnes of urea, of which 700,000t will go initially to the Australian market and the rest to export.

However, Wilson said the consortium expected the Australian agricultural market would take the whole of the plant's output within 5-6 years. The consortium will also sell 100,000t of excess ammonia to domestic and export markets each year.

Although the precise details are still to be finalised, Wilson said Agrium would hold the majority interest in the consortium and Plenty River a substantial interest. The engineering partners Thiess and Krupp Uhde would hold smaller shares.