Equinor and Indian fertilizer and petrochemical company Deepak signed a 15-year deal for supplies of liquefied natural gas (LNG), with deliveries starting in 2026, the Norwegian energy company announced on Monday.
The agreement covers an annual supply of around 650,000 tonnes, the company said in a statement.
Equinor’s growing global LNG portfolio, sourced from a Norwegian plant and mainly from the US, will serve as the primary gas supply for Deepak’s newly commissioned plant, especially for ammonia production in fertilizer and petrochemical manufacturing, the company added.
Ammonia is crucial for agriculture and food security, and Deepak-produced ammonia from the natural gas will be for domestic use.
“Deepak’s new ammonia plant has created new gas demand in the growing Indian market,” said Helge Haugane, Equinor’s senior vice president for Gas & Power.
“We look forward to developing our relationship with Deepak and exploring avenues for further collaboration on petrochemical feedstocks such as propane and ethane and on low-carbon ammonia in the future,' Haugane added.
For his part, Sailesh C. Mehta, chairman and managing director at Deepak Fertilisers and Petrochemicals Corporation Ltd. said: “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.”
By Handan Kazanci
Anadolu Agency
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