Equinor Secures 15-Year LNG Supply Deal with Deepak Fertilisers Starting 2026

On Monday, Equinor announced a significant milestone as it inked a lengthy agreement with Deepak Fertilisers and Petrochemicals Corporation (DFPCL) to provide liquefied natural gas (LNG), marking the largest deal of its kind between the Norwegian company and a private sector entity in India.

Under the terms of the contract, Equinor will deliver 0.65 million tonnes (mt) of LNG to Deepak Fertilisers over a span of 15 years, commencing in 2026.

"The foundation of Equinor's expanding global LNG portfolio lies in our LNG plant in Hammerfest, Norway, and the procurement of LNG primarily from the United States. This portfolio will serve as the primary supply source for Deepak, primarily utilized as feedstock for ammonia production in their recently inaugurated facility dedicated to manufacturing fertilisers and petrochemicals," stated the Norway-based energy giant.

Helge Haugane, Equinor’s Senior Vice-President for Gas & Power, emphasized the emergence of new gas demand in the burgeoning Indian market due to the ammonia plant. "This agreement exemplifies how we leverage our position in the Atlantic basin to fortify our ties with key stakeholders in the expanding Indian market. We eagerly anticipate fostering our relationship with Deepak and exploring avenues for further collaboration in petrochemicals feedstocks such as propane and ethane, as well as in low carbon ammonia initiatives in the future," he remarked.

The contract, formalized by Equinor’s Executive Vice-President Irene Rummelhoff and DFPCL Chairman and Managing Director Sailesh C Mehta, stands out as one of Equinor's most substantial agreements with a private sector entity in India, according to Deepak Fertilisers.

Sailesh C Mehta, Chairman and Managing Director of DFPCL, highlighted the multifaceted benefits of the deal, envisioning a robust value chain encompassing gas, ammonia, nitric acids, fertilisers, mining chemicals, and industrial chemicals. "This collaboration positions Deepak Fertilisers to navigate global market fluctuations and bolster overall margins. We eagerly anticipate exploring strategic partnerships with Equinor in our Chemical Business segment, as well as joint efforts toward reducing carbon footprints," Mehta expressed.

DFPCL also noted that the LNG agreement paves the way for potential trading opportunities to meet India's growing LNG demands, with deliveries slated for the west coast of India. Moreover, DFPCL disclosed that preparations are underway for a Regasification Terminal, with pipeline connectivity to the plant's doorstep already established.

The agreement between Equinor and DFPCL extends beyond LNG supply, aiming to foster collaboration on petrochemicals feedstocks and strategic decarbonisation pathways in the future, DFPCL affirmed.

HBL