Equinor signs 15-year LNG deal with India's Deepak Fertilizers
(Reuters) - Norway's Equinor said it had signed a 15-year agreement to supply LNG to India's Deepak Fertilizers from 2026.
The agreement covers an annual supply of around 0.65 million tons (around 9 terawatt hours) and will be used mainly as a feedstock for production of ammonia at a newly commissioned fertilizers and petrochemicals plant, Equinor said.
"Deepak’s new ammonia plant has created new gas demand in the growing Indian market," Equinor's head of Gas & Power, Helge Haugane said in a statement.
The ammonia which Deepak will produce from the natural gas will be for domestic use.
The LNG will come from Equinor's global portfolio which is based on its plant at Melkoeya island just outside the Arctic town of Hammerfest, and sourced mainly from the United States, it said.
"The agreement will help us absorb global volatility as well as enhance overall margins," Deepak Chairman and Managing Director Sailesh Mehta said in the statement.
No financial details were provided.
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