Deepak Fertilisers enters into a 15-year LNG contract with Norway's Equinor
Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) has entered into a long-term supply agreement for Liquefied Natural Gas (LNG) with Equinor, an international energy company headquartered in Norway.
Equinor, erstwhile Statoil, will annually supply up to 0.65 million tonnes to DFPCL over a period of 15 years, beginning in 2026.
The tie-up provides room for trading some LNG parcels in the growing LNG demands in India as well as accommodating DFPCL’s growing captive needs, the companies said. The LNG will be delivered to the west coast of India. DFPCL is at an advanced stage of tying up the re-gasification terminal with the gas pipeline grid connectivity to its plant's doorstep already in place.
“This will put on a solid footing Deepak Fertilisers value-chain right from Gas to Ammonia to building block Nitric Acids to downstream Fertilisers, Mining Chemicals, and Industrial Chemicals, helping it to absorb Global volatility as well as enhance overall margins. We also look forward to exploring with Equinor, strategic tie-ups in our Chemical Business, as well as carbon footprint reduction initiatives,” said Sailesh C. Mehta, Chairman & Managing Director, of DFPCL.
With this tie-up, DFPCL strengthens its value chain with an attractive long-term LNG contract to solidify its value chain from Gas to Ammonia to various downstream Fertilisers, Industrial Chemicals, and Mining Chemicals.
DFPCL's scrip ended nearly flat at Rs 494.40 on the BSE, Monday. Benchmark Sensex ended 0.39% higher.
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