Equinor Signs 15-Year LNG Supply Deal with Deepak

20.02.2024 - Norwegian energy group Equinor and India’s Deepak Fertilisers and Petrochemicals Corporation (DFPCL) have signed a 15-year contract for the supply of liquefied natural gas (LNG), scheduled to start in 2026.

Equinor said that it will supply LNG from its plant in Hammerfest, Norway and LNG sourced mainly from the US.

Deepak wants to use the gas mainly as feedstock for production of ammonia in its newly commissioned plant for manufacturing fertilizers and petrochemicals. The agreement covers a supply of around 0.65 million t/y (ca 9 TWh) of LNG.

“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 Fertilisers. 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 Helge Haugane, Equinor’s senior vice president for Gas & Power.

Sailesh C. Mehta, chairman and managing director of DFPCL, added: “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.”