Equinor signs a 15-year LNG agreement with Deepak Fertilisers
Equinor and the Indian fertiliser and petrochemical company Deepak Fertilisers have signed a 15-year agreement for supplies of liquefied natural gas (LNG) with deliveries starting in 2026.
Equinor’s growing global LNG portfolio is based on LNG from the Equinor operated LNG Plant in Hammerfest, Norway and LNG supply sourced mainly from the US.
This portfolio will be the base of supply to Deepak, which will use the gas mainly as feedstock for production of ammonia in its newly commissioned plant for manufacturing fertilisers and petrochemicals. The agreement covers an annual supply of around 0.65 million tons (ca 9 TWh) of LNG for 15 years starting from 2026.
Ammonia is a key building block for the society, being crucial for agriculture and food security. The ammonia which Deepak will produce from the natural gas will be for domestic use.
“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”, says Equinor’s Senior vice president for Gas & Power, Helge Haugane.
“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,” said Sailesh C. Mehta, Chairman & Managing Director, DFPCL.
About Deepak
Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL) is among India’s leading manufacturers of industrial chemicals and fertilisers. DFPCL is one of the leading manufacturers of Technical Ammonium Nitrate in the world, used in agriculture as fertilisers.
The company is the only producer of prilled TAN solids in India and also manufactures medical grade Ammonium Nitrate.
India’s Leading Producers of Fertilizers & Industrial Chemicals (dfpcl.com)
Latest news
Equinor third quarter 2024 results
Equinor delivered adjusted operating income* of USD 6.89 billion and USD 2.04 billion after tax in the third quarter of 2024. Equinor reported net operating income of USD 6.91 billion and net income at USD 2.29 billion. Adjusted net income* was USD 2.19 billion, leading to adjusted earnings per share* of USD 0.79.
Equinor to commence fourth tranche of the share buy-back programme for 2024
Equinor will on 25 October 2024 commence the fourth and final tranche of up to USD 1.6 billion of the share buy-back programme for 2024, as announced in relation with the third quarter results 24 October 2024.
Key information relating to cash dividend for third quarter 2024
Key information relating to the cash dividend to be paid by Equinor ASA for third quarter 2024.