Energy Synergy: Deepak Fertilisers and Petronet LNG Chart Course for Sustainable Manufacturing

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) has entered into a historic long-term agreement with Petronet LNG Ltd (PLL) for the regasification of LNG, a major boost to India's industrial energy value chain.

 

Key Highlights
 

Contract Value & Duration:

The deal is worth ₹1,200 crore (₹12 billion) with incremental 20% spending scope over its 5.5-year tenure.

 

LNG Quantity & Supply:

Petronet LNG will regasify approximately 25–25.6 Trillion British Thermal Units (TBTUs) of LNG each year, following a ramp-up phase. Regasification would predominantly be at Petronet's crown jewel Dahej, Gujarat terminal, one of the busiest LNG regasification terminals in the world.

 

Start & End Dates:

Operations are planned to start from May to July 2026 and go up to December 31, 2031.

 

Supply Chain Integration:

The regasified natural gas will be used primarily to supply DFPCL's and its subsidiary PCL's Taloja, Maharashtra-based factories for internal use, for the manufacture of ammonia, nitric acid, NPK fertilisers, and industrial chemicals.

 

Strategic Significance:

This deal provides a strong, secure value chain from natural gas to value-added products, which will improve the operating efficiency and competitiveness of DFPCL. It also improves the visibility and utilization of Petronet LNG's upgraded regasification capacity in the long run.

 

Industry Impact:

The agreement is based on DFPCL's previous LNG supply pact with Norway's Equinor, which strengthens India's energy security and industrial development. "This transaction will create a solid, stable, and effective supply chain—from natural gas to value-added downstream products—improving operational efficiency and competitiveness." — Sailesh C Mehta, Chairman & MD, DFPCL 

 

Source: Moneycontrol, Angel One, Financial Express, CNBC TV18, Indian Chemical News