July 25, 2024
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Equinor Signs Long-Term LNG Supply Agreement with Indian Firm

Norwegian energy giant Equinor has inked a significant 15-year agreement to supply liquefied natural gas (LNG) to India’s Deepak Fertilisers.

This marks a strategic move by Equinor to bolster its LNG portfolio and cater to the burgeoning gas demand in the Indian market.

The deal entails Equinor delivering 0.65 million tons of LNG annually starting in 2026, with the gas primarily sourced from Equinor’s Hammerfest LNG export plant in Norway and additional supply from the United States.

Deepak Fertilisers will utilize the LNG predominantly as a feedstock for ammonia production at its newly commissioned plant, highlighting the pivotal role of natural gas in supporting India’s industrial growth and meeting the rising demand for fertilizers and petrochemicals.

Helge Haugane, Equinor’s Senior Vice President for Gas & Power, emphasized the significance of the partnership with Deepak Fertilisers and expressed enthusiasm for potential collaboration on other petrochemical feedstocks and low-carbon ammonia initiatives in the future.

“Deepak’s new ammonia plant has created new gas demand 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,” Haugane said.

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This long-term agreement with Deepak Fertilisers comes on the heels of Equinor’s landmark natural gas supply deal with Germany’s state-controlled firm Securing Energy for Europe (Sefe), underscoring Equinor’s commitment to expanding its global LNG footprint and fostering strategic partnerships in key energy markets.

The deal with Sefe, valued at an estimated $54 billion, highlights Equinor’s role as a reliable supplier of natural gas to meet Europe’s energy needs over the coming decade.

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