Equinor Enters Long-Term LNG Agreement with Deepak Fertilisers

Equinor, in collaboration with Deepak Fertilisers, a leading Indian player in the fertiliser and petrochemical industry, has formalized a significant 15-year agreement for the supply of liquefied natural gas (LNG), with deliveries set to commence in 2026. This landmark agreement underscores Equinor's expanding global LNG portfolio, which draws from LNG sourced primarily from the Equinor-operated LNG Plant in Hammerfest, Norway, as well as supplies originating mainly from the United States. Serving as the cornerstone of this portfolio, Equinor's LNG offerings will serve as the primary source of supply for Deepak Fertilisers, which will primarily utilize the gas as feedstock for its newly established plant dedicated to the production of fertilisers and petrochemicals.

The agreement entails an annual supply commitment of approximately 0.65 million tons (equivalent to approximately 9 terawatt hours) of LNG over a span of 15 years, commencing in 2026. Ammonia, a vital component pivotal for agriculture and food security, will be the principal output derived from the natural gas processed by Deepak Fertilisers. This ammonia production will primarily cater to domestic demands, reflecting its critical role as a foundational element for societal development.

Deepak Fertilisers' recent commissioning of a state-of-the-art ammonia plant has significantly bolstered gas demand within the burgeoning Indian market. Equinor's successful conclusion of this agreement with Deepak Fertilisers exemplifies its strategic utilization of its presence in the Atlantic basin to fortify partnerships with key stakeholders in India's rapidly expanding market landscape. Equinor is eager to cultivate and nurture its collaboration with Deepak Fertilisers, with a view to exploring avenues for future collaboration encompassing petrochemical feedstocks such as propane and ethane, alongside endeavors focused on promoting low-carbon ammonia production methodologies.

Deepak Fertilisers expressed their enthusiasm regarding the long-term agreement with Equinor for LNG supply, emphasizing the invaluable contribution it will make towards ensuring a consistent and reliable supply of feedstock. This partnership stands poised to augment Deepak Fertilisers' value chain, facilitating the seamless transition from gas to ammonia—the cornerstone of fertiliser production. Moreover, the agreement is anticipated to serve as a bulwark against global market volatility while concurrently enhancing overall profit margins. Deepak Fertilisers eagerly anticipates further exploration of collaborative opportunities with Equinor, particularly pertaining to initiatives aimed at optimizing feedstock utilization and reducing carbon footprint across their operations.

In essence, the Equinor-Deepak Fertilisers LNG agreement represents a pivotal milestone in the evolution of sustainable and strategic partnerships within the global energy and petrochemical sectors. As both entities embark on this mutually beneficial journey, they are poised to leverage their respective strengths to drive innovation, foster sustainability, and contribute meaningfully to the socio-economic fabric of their respective markets.