Equinor and Deepak Fertilisers Forge Long-Term LNG Supply Partnership
(IN BRIEF) Equinor and Deepak Fertilisers have inked a significant 15-year agreement for the supply of liquefied natural gas (LNG), commencing deliveries in 2026. Drawing from Equinor’s expansive global LNG portfolio, which encompasses production from the Hammerfest LNG Plant in Norway and sources predominantly from the United States, the agreement entails an annual supply of approximately 0.65 million tons of LNG to Deepak. This LNG will predominantly serve as feedstock for Deepak’s recently inaugurated ammonia production facility, bolstering its role in fertiliser and petrochemical manufacturing. Helge Haugane, Equinor’s Senior Vice President for Gas & Power, expressed enthusiasm for reinforcing ties with Deepak and exploring future collaborative opportunities in low-carbon initiatives. Likewise, Sailesh C. Mehta, Chairman & Managing Director of DFPCL, hailed the agreement as pivotal for ensuring a reliable supply of feedstock, strengthening Deepak’s value chain from gas to ammonia, and enhancing overall margins. The collaboration also sets the stage for potential future collaborations in feedstocks and carbon footprint reduction initiatives.
(PRESS RELEASE) STAVANGER, 19-Feb-2024 — /EuropaWire/ — Equinor ASA (OSE:EQNR, NYSE:EQNR), an oil, gas, wind and solar energy company active in more than 30 markets globally, and Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL), a prominent Indian fertiliser and petrochemical manufacturer, have formalized a strategic 15-year agreement for liquefied natural gas (LNG) supply, slated to commence deliveries in 2026.
Under the terms of the agreement, Equinor will leverage its extensive global LNG portfolio, which encompasses production from the Hammerfest LNG Plant in Norway and predominantly sourced LNG from the United States, to provide Deepak Fertilisers with approximately 0.65 million tons of LNG annually. Deepak Fertilisers, in turn, will utilize the LNG primarily as a feedstock for its newly commissioned ammonia production facility, bolstering its position in fertiliser and petrochemical manufacturing.
Expressing his satisfaction with the partnership, Helge Haugane, Senior Vice President for Gas & Power at Equinor, emphasized the company’s commitment to leveraging its position in the Atlantic basin to strengthen relationships with key players in the growing Indian market. Haugane said “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.”
In response, Sailesh C. Mehta, Chairman & Managing Director of DFPCL, hailed the agreement as a significant milestone for the company. Mehta commented “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 fertilisers. 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.”
Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL) is a leading Indian manufacturer of industrial chemicals and fertilisers. DFPCL boasts a distinguished track record in the production of Technical Ammonium Nitrate and prilled TAN solids, vital components in agriculture as fertilisers.
Sissel Rinde
Vice president Media relations
Corporate affairs
sisr@equinor.com
+47 412 60 584
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First published in this link of EuropaWIRE.
