Equinor inks 15-year LNG supply deal with Deepak Fertilizers
The energy giant Equinor has signed a 15-year agreement with India’s Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL) to supply liquefied natural gas (LNG) starting in 2026. Equinor said that its growing global LNG portfolio is underpinned by its operations at the Hammerfest plant in Norway and LNG supplies sourced primarily from the United States.
The contract promises an annual delivery of approximately 0.65 million tonnes of LNG, equating to around 9 terawatt-hours, to fuel Deepak Fertilizers’ operations – which include a new factory. The facility will utilize the LNG as a feedstock for ammonia production and will cater to India’s domestic needs.
“Deepak’s new ammonia plant has created new gas demand in the growing Indian market. I am very happy that we have landed this agreement with Deepak Fertilizers. The agreement is another proof of how we use our position in the Atlantic basin to strengthen our relationship with key players in the growing Indian market. We look forward to developing our relationship with Deepak and to exploring avenues for further collaboration on petrochemicals feedstocks such as propane and ethane and on low carbon ammonia in the future”, said Equinor’s senior vice president for gas and power, Helge Haugane.
“We are very happy to enter into this long-term agreement with Equinor for supply of LNG. The agreement will provide reliable supplies of feedstock which will further strengthen Deepak Fertilisers’ value-chain from gas to ammonia, the key ingredient in fertilizers. The agreement will help us absorb global volatility as well as enhance overall margins. We also look forward to exploring with Equinor further collaboration on feedstock and carbon footprint reduction initiatives,” said Sailesh C. Mehta, DFPCL’s chairman and managing director.
