Vikas Rambal's Perdaman Chemicals and Fertilisers has signed an off-take agreement with listed fertiliser giant Incitec Pivot for the entire output of granular urea fertiliser from its proposed Collie Urea Plant.

The agreement covers the purchase of 2 million tonnes of fertiliser a year for a period of 20 years.

Perdaman's $3.5 billion Collie urea plant is scheduled to start production in 2014.

It will be Australia's first coal gasification plant, turning Collie coal into urea.

Mr Rambal, company chairman and executive director, said the off-take deal was a major step forward for the development of the plant.

"The Collie urea plant has the potential to make Australia a major player in the global urea market. The agreement means that the nation can become a major exporter of urea," Mr Rambal said.

"This will benefit Australia's balance of trade figures. There will also be opportunities for sales of urea within WA."

Incitec general manager supply chain James Whiteside said the company would sell the urea in markets such as India, Pakistan, Asia and the Americas.

These target markets represent 16mt out of a total global urea trade of 35mt.

Mr Rambal said Perdaman was on track to start construction of the plant during the first half of 2011.

The project is estimated to generate between 1200 and 1500 construction jobs and 200 operational jobs once the plant begins production.