Equinor Pens 15-Year LNG Supply Deal with Indian Firm

Monday, February 19, 2024

Norway’s energy major Equinor and the Indian fertilizer 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 United States.

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 fertilizers 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, the companies said.

“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,” said Helge Haugane, Equinor’s Senior Vice President for Gas & Power.

Categories: LNG Industry News Activity Europe Production Asia

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