Equinor ASA has signed a deal to provide about 650,000 metric tons of liquefied pure gasoline (LNG) every year to Deepak Fertilizers and Petrochemicals Corp. Ltd. for 15 years beginning 2026, the Norwegian power main stated.
“Equinor’s rising world LNG portfolio is predicated on LNG from the Equinor operated LNG Plant in Hammerfest, Norway and LNG provide sourced primarily from the US”, the majority-state-owned firm stated in a information launch. “This portfolio would be the base of provide to Deepak, which is able to use the gasoline primarily as feedstock for manufacturing of ammonia in its newly commissioned plant for manufacturing fertilizers and petrochemicals”.
Hammerfest LNG on the island of Melkoya has a declared regular manufacturing capability of 230 billion cubic ft per yr.
“Deepak’s new ammonia plant has created new gasoline demand within the rising Indian market”, Equinor senior vice-president for gasoline and energy Helge Haugane stated in an announcement.
“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 stated, including the 2 firms are exploring additional collaboration involving petrochemical feedstocks resembling ethane and propane, in addition to on low-carbon ammonia.
Deepak chair and managing director Sailesh C. Mehta stated, “The settlement will assist us soak up world volatility in addition to improve general margins”.
“We additionally stay up for exploring with Equinor additional collaboration on feedstock and carbon footprint discount initiatives”, Mehta added.
That is Equinor’s first introduced LNG order for the yr.
On December 19 it introduced an settlement to provide round 10 billion cubic meters (353.1 billion cubic ft) of pure gasoline yearly to Germany’s state-owned midstream power firm SEFE GmbH for 10 years, extendable for 5 years. Supply was to start out January 2024.
“The annual volumes are equal to one-third of German industrial demand”, Equinor stated in a press launch on the time.
“After the Troll gasoline gross sales settlement in 1986, this is likely one of the largest gasoline gross sales agreements Equinor has entered into as an organization”, it famous.
“The gasoline shall be delivered to Buying and selling Hub Europe in Germany, Title Switch Facility within the Netherlands and on the Nationwide Balancing Level within the UK”, Equinor stated.
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