Deepak Fertilisers ties up with Norway's Equinor for long-term LNG supply

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) on Monday said it has entered into a long-term agreement with Norway's Equinor for supply of Liquefied Natural Gas (LNG).

In a regulatory filing, DFPCL said the a long-term LNG contract will strengthen its value chain from gas to ammonia to various downstream fertilisers, industrial chemicals, and mining chemicals.

This end-to-end tie-up shall establish a strong long-term foundation for all of DFPCL's product segments.

''This agreement is for annual supplies of up to 0.65 million tonnes over a period of 15 years, beginning 2026. The tie-up provides room for trading some LNG parcels in the growing demands in India as well as accommodating DFPCL's growing captive needs,'' the company said. The LNG will be delivered to the west coast of India, the company said.

Equinor, erstwhile Statoil, is among the established leaders in the oil & gas sector over the last 50 years, with a market cap of USD 75 billion wherein majority shares are owned by the Norwegian government.

The agreement signed by Irene Rummelhoff, Executive Vice-President, Equinor, and Sailesh C Mehta, Chairman & Managing Director, DFPCL, is one of the largest contracts signed by Equinor with a private sector company in India.

DFPCL is at an advanced stage of tying up the regasification terminal with the gas pipeline grid connectivity to its plant's doorstep already in place.

DFPCL has plants in four states -- Maharashtra (Taloja), Gujarat (Dahej), Andhra Pradesh (Srikakulam), and Haryana (Panipat).