Deepak Fertilisers Secures Long-Term LNG Supply Agreement with Equinor, Shares Surge 9%

20 Feb 2024 , 11:06 AM

Deepak Fertilisers and Petrochemicals Corporation (DFPCL) witnessed a remarkable 9% surge in its shares during opening trade on February 20, following the announcement of a strategic long-term supply agreement for Liquefied Natural Gas (LNG) with Norway-based Equinor.

At 11.03 AM, DFPCL's stock was trading at Rs 529.50, marking a significant increase of Rs 35.50, or 7.09%, on the BSE.

The newly forged agreement entails annual LNG supplies of up to 0.65 million tonnes for a duration of 15 years, commencing in 2026. This partnership positions DFPCL to meet its growing captive needs while also enabling the trading of LNG parcels to address the burgeoning demand for LNG in India. Deliveries are slated for the west coast of India, strategically positioning DFPCL to capitalize on regional market dynamics.

By solidifying its value chain from Gas to Ammonia to downstream Fertilisers, Industrial Chemicals, and Mining Chemicals, DFPCL strengthens its position in the market. This comprehensive tie-up with Equinor establishes a robust long-term foundation across all segments of DFPCL's product portfolio, reinforcing its commitment to operational excellence and sustainable growth.

Despite a 77% decline in net profit to Rs 57.56 crore in the quarter ended December 2023, DFPCL's strategic move to secure a long-term LNG supply agreement underscores its resilience and strategic foresight.