Equinor signs 15-year LNG supply pact with India's Deepak Fertilisers

Norwegian energy company Equinor announced on February 19 that it had entered into a 15-year agreement with Deepak Fertilisers, an Indian fertiliser and petrochemical company, for the supply of LNG. The agreement, set to commence in 2026, covers the supply of approximately 0.65mn/tonnes of LNG.

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

"Deepak’s new ammonia plant has created new gas demand in the growing Indian market," said Equinor's head of Gas & Power, Helge Haugane.

Equinor said its global LNG portfolio is based on LNG from the plant in Hammerfest, Norway and LNG supply sourced mainly from the US. This portfolio will be the base of supply to Deepak Fertilisers, it added.

“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, managing director, Deepak Fertilisers.

Equinor did not provide any financial details.