Incitec Pivot (ASX:IPl) has secured an exclusive 20-year offtake of up to 2.3 million tons per annum of granular urea from Perdaman's Karratha plant, which is expected to commence in mid-2027.

This provides Incitec Pivot Fertilizers with access to competitively priced urea for business growth and a platform to increase the level of recurring earnings.

The agreement is expected to add an estimated EBIT of $45M per annum to the business upon plant commissioning.

Its Managing Director and CEO, Jeanne Johns says: "We are pleased to partner in a major Australian project that utilises the country's  natural gas resources for domestic urea manufacturing operations that is essential for the future of our Australian and international agricultural markets."