Burrup Fertilisers has declared force majeure on its water and gas supply contracts, arguing that an unexpected disruption means it should be excused from these contracts, The Australian reports today.

Construction of $A630 million plant on the Burrup Peninsula, near Karratha, began in April 2003. The plant was due to be up and running by the third quarter of this year.

The plant had originally been designed to use modified existing facilities at Dampier. But the WA Government had decided to build a common-user bulk liquids facility at the port, which is not due to be finished until late November.

The ammonia plant has an 80 terajoule per day gas contract with the Harriet joint venture, which is led by Apache Northwest and also includes Kufpec and Tap Oil.