Norwegian oil (Equinor) and Indian fertiliser Deepak Fertilisers have signed a 15-year LNG** agreement for deliveries from 2026.
Equinor's growing global LNG portfolio is based on LNG from Equinor's Hammerfest LNG plant in Norway and LNG** primarily from the US.
The portfolio will be the foundation for DeepAK, which will primarily use natural gas as a feedstock for ammonia production at its newly commissioned fertilizer and petrochemical production plants. The agreement covers approximately 650,000 tonnes (approximately 9 TWh) of LNG per annum over a 15-year period commencing in 2026.
Ammonia is a key component of society and is essential for agriculture and food security. The ammonia produced by DeepAK from natural gas will be used for domestic use.
Helge Haugane, Equinor's senior vice president of gas and power, said: "Deepak's new ammonia plant is creating new gas demand in the growing Indian market. I am delighted that we have reached this agreement with Deepak Fertilisers. This agreement is yet another example of how we can leverage our position in the Atlantic basin to strengthen our relationships with key players in the growing Indian market." We look forward to developing our relationship with Deepak and exploring avenues for further cooperation in the future on petrochemical feedstocks such as propane and ethane, as well as low-carbon ammonia." ”
Sailesh C., Chairman and Managing Director, DFPCL"We are delighted to have entered into this long-term agreement with Equinor for LNG**," Mehta said. The agreement will provide reliable feedstocks**, which will further strengthen Deepak Ferrisers' value chain from natural gas to ammonia, a key ingredient in fertilisers. This agreement helps us absorb global volatility and improve our overall margins. We also look forward to further collaboration with Equinors on feedstock and carbon footprint reduction initiatives." (Compiled by Xiao Chen).
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