Equinor Signs 15-Year LNG Supply Deal With Deepak Fertilisers

By Dominic Chopping

Equinor has signed a 15-year deal to supply liquefied natural gas to Indian fertilizer and petrochemical company Deepak Fertilisers.

The agreement covers an annual supply of around 650,000 metric tons of LNG, or around 9 terrawatt hours, from 2026.

Deepak will use the gas mainly as feedstock for production of ammonia in its newly commissioned plant for manufacturing fertilizers and petrochemicals.

"The agreement will provide reliable supplies of feedstock which will further strengthen Deepak Fertilisers' value-chain from gas to ammonia, the key ingredient in fertilizers. The agreement will help us absorb global volatility as well as enhance overall margins," said Sailesh C. Mehta, Chairman and Managing Director of Deepak Fertilisers and Petrochemicals Corporation.

Financial terms weren't disclosed.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

02-19-24 0817ET