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Deepak Fertilisers sign agreement with Equinor for LNG supply

Wednesday, 21 Feb 2024
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Deepak Fertilisers and Petrochemicals Corporation (DFPCL) has entered into a long-term supply agreement for liquefied natural gas (LNG) with energy major Equinor. It is one of the largest contracts signed by the Norway-based company with a private sector firm in India.

DFPCL has signed a 15-year LNG contract with Equinor to strengthen its value chain from gas to ammonia to various downstream fertilisers and industrial and mining chemicals. The deal will ensure annual supplies of up to 0.65 million tonne, starting from 2026. The deal will provide a significant boost to DFPCL operations as it is at an advanced stage of connecting the re-gasification terminal and the gas pipeline grid to its plant. LNG will be delivered to the west coast of India.

Equinor’s global LNG portfolio is based on gas from the Equinor-operated plant in Hammerfest, Norway and supply sourced mainly from the US. This portfolio will be the base of supply to DFPCL, which will use the gas mainly as feedstock for the production of ammonia in its newly commissioned plant for the manufacture of fertilisers and petrochemicals. The ammonia produced from the natural gas will be for domestic use.

DFPCL and Equinor will be exploring avenues for further collaboration and tie-ups for its chemical business, petrochemicals feedstocks such as propane and ethane and low carbon ammonia in the future.  

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