Equinor indicators 15-year LNG settlement with Deepak Fertilizers

Equinor’s rising international LNG portfolio is predicated on LNG from the Equinor operated LNG Plant in Hammerfest, Norway and LNG provide sourced primarily from the US.

This portfolio would be the base of provide to Deepak, which can use the gasoline primarily as feedstock for manufacturing of ammonia in its newly commissioned plant for manufacturing fertilizers and petrochemicals. The settlement covers a provide of round 0.65 million tpy (ca 9 TWh) of LNG for 15 years ranging from 2026.

Ammonia is a key constructing block for the society, being essential for agriculture and meals safety. The ammonia which Deepak will produce from the pure gasoline shall be for home use.

“Deepak’s new ammonia plant has created new gasoline demand within the rising Indian market. I’m very blissful that we’ve landed this settlement with Deepak Fertilizers. The settlement is one other proof of how we use our place within the Atlantic basin to strengthen our relationship with key gamers within the rising Indian market. We look ahead to growing our relationship with Deepak and to exploring avenues for additional collaboration on petrochemicals feedstocks akin to propane and ethane and on low carbon ammonia sooner or later,” stated Equinor’s Senior vice chairman for Fuel and Energy, Helge Haugane.

“We’re very blissful to enter into this long-term settlement with Equinor for provide of LNG. The settlement will present dependable provides of feedstock which can additional strengthen Deepak Fertilizers’ value-chain from gasoline to ammonia, the important thing ingredient in fertilizers. The settlement will assist us soak up international volatility in addition to improve total margins. We additionally look ahead to exploring with Equinor additional collaboration on feedstock and carbon footprint discount initiatives,” commented Sailesh C. Mehta, Chairman and Managing Director, DFPCL.

Learn the article on-line at: https://www.lngindustry.com/liquid-natural-gas/20022024/equinor-signs-15-year-lng-agreement-with-deepak-fertilizers/