Norwegian oil and natural gas supplier Equinor signs 15-year LNG accord for ‘food security’ cargoes delivered to India
Equinor, the Norwegian major that is now the leading pipeline natural gas supplier to Europe, has just signed a 15-year agreement to deliver LNG cargoes to India with shipments starting in 2026.
Equinor’s growing global LNG portfolio is based on output from the Equinor-operated Hammerfest liquefaction plant on Melkøya island in northern Norway and additional cargoes booked mainly from the US.
Equinor said that the new Indian partner, Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), would use the regasified LNG mainly as feedstock for production of ammonia in its newly commissioned plant for manufacturing fertilisers and petrochemicals.
The Equinor-Deepak agreement covers an annual supply of around 650,000 tonnes per annum of LNG for 15 years starting from 2026.
Equinor said that it was delighted with the Deepak agreement as ammonia was a “key building block for the society, being crucial for agriculture and food security” in the Asian nation.
“The ammonia which Deepak will produce from the natural gas will be for domestic use,” added Equinor.
New plant
The Deepak fertilisers facility is located at Taloja in the West Coast state of Maharashtra.
“Deepak’s new ammonia plant has created new gas demand in the growing Indian market,” explained Helge Haugane, Equinor’s Senior Vice President for Gas and Power.
“I am very happy that we have landed this agreement with Deepak Fertilisers. 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,” he added.
“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,” stated Hauge.
Sailesh C. Mehta, Chairman and Managing Director, of DFPCL, said he was delighted with the Norwegian LNG deal.
“The agreement will provide reliable supplies of feedstock which will further strengthen Deepak Fertilisers’ value-chain from gas to ammonia, the key ingredient in fertilisers,” Mehta explained.
“The agreement will help us absorb global volatility as well as enhance overall margins,” he added.
“We also look forward to exploring with Equinor further collaboration on feedstock and carbon footprint reduction initiatives,” stated Mehta.
