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Norway’s Equinor ASA has agreed to provide one among India’s largest chemical producers utilizing its rising portfolio of Norwegian and U.S. LNG underneath a brand new long-term gross sales and buy settlement (SPA).
Deepak Fertilisers and Petrochemicals Corp. Ltd. has secured 0.65 million metric tons/yr (mmty) of liquefied pure gasoline for 15 years from Equinor that it plans to make use of largely as feedstock for a lately commissioned ammonia plant.
The SPA marks Deepak’s first direct provide settlement for LNG and Equinor’s largest take care of a non-public Indian firm. Equinor’s Helge Haugane, senior vp for Fuel and Energy, mentioned it additionally opens the door for future collaboration on propane, ethane and low-carbon ammonia feedstocks.
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“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,” Haugane mentioned.
The U.S. Power Info Administration (EIA) estimated India’s burgeoning industrial sector would assist triple the nation’s pure gasoline consumption by 2050 at an annual price of 4.4%, greater than double China’s demand progress price. A big portion of the commercial progress is anticipated to come back from home ammonia manufacturing for fertilizer as India continues to cut back its ammonia imports.
By the center of the century, EIA expects Indian pure gasoline consumption to achieve 23.2 Bcf/d. Industrial demand might make up 80% of whole consumption, adopted by the transportation sector at 10%.
Whereas EIA anticipates India’s home gasoline manufacturing to just about triple by 2050 to assist meet that added demand, it additionally expects “web pure gasoline imports to develop even sooner than home manufacturing, growing from 3.6 Bcf/d in 2022 to 13.7 Bcf/d in 2050.”
Value delicate chemical producers in India like Deepak have additionally more and more been on the hunt for safe gasoline provides that present insulation from the risky spot market. The federal government has additionally been progressively decreasing the volumes of backed gasoline it affords producers to offer low-cost home fertilizer as Russia’s invasion of Ukraine continues to raise gasoline costs above the five-year common.
As rising economies search for extra versatile and reasonably priced provide, Equinor has moved to additional diversify and increase its LNG portfolio with U.S. provide. Final yr, the Norwegian agency agreed to greater than double its offtake from Cheniere Power Inc. by 2027.
A part of the volumes in its 1.75 mmty SPA would come from an growth of Sabine Cross LNG in Louisiana, which is at the moment within the pre-filing section with the Federal Power Regulatory Fee.
The agency additionally operates the 4.19 mmty capability Hammerfest LNG facility in Norway. It’s a 34% proprietor within the Snohvit Consortium, which holds 2.9 mmty in export capability on the facility.
Equinor has a world portfolio of oil and gasoline initiatives it plans to make use of to spice up manufacturing via the last decade. It is also repositioning exploration and manufacturing sources to current discoveries within the Norwegian Continental Shelf to safe long-term pipeline gasoline provide to Europe.
The publish Equinor Nets 15-Yr LNG Provide Settlement to Help Indian Ammonia Manufacturing appeared first on Pure Fuel Intelligence
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