Norway’s Equinor and India’s Deepak Fertilisers have signed a 15-year deal for supplies of liquefied natural gas (LNG) with deliveries starting in 2026.
The agreement covers an annual supply of around 0.65 million tons (ca 9 TWh) of LNG, Equinor said in a statement on Monday.
The firm said its growing global LNG portfolio is based on LNG from its operated plant in Hammerfest, Norway and LNG supply sourced mainly from the US.
This portfolio will be the base of supply to Deepak, which will use the gas mainly as feedstock for production of ammonia in its newly commissioned plant for manufacturing fertilizers and petrochemicals.
Equinor’s senior VP for gas and Power, Helge Haugane, said Deepak’s new ammonia plant has created new gas demand in the growing Indian market.
“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 said.
Equinor’s LNG portfolio
Equinor and its partners in the 4.3 mtpa Hammerfest LNG export plant are currently working to upgrade the facility located on Melkoya island.
Hammerfest LNG liquefies natural gas coming from the Snohvit field in the Barents Sea.
As per the US supplies, US LNG exporting giant Cheniere signed last year a long-term supply deal with Equinor.
Under the SPA, Cheniere Marketing will supply about 1.75 mtpa of LNG to Equinor on a free-on-board basis.
This agreement brings the total volumes that Equinor has contracted with Cheniere up to around 3.5 mtpa.
Delivery of half of the volume associated with the new SPA will start in 2027, and delivery of the remaining half, which is subject to, among other things, a positive final investment decision with respect to the first train of the Sabine Pass expansion project, will start at the end of this decade.
