Gas Partnership Sealed: Deepak Fertilisers Subsidiary Signs Rs 1,200 Crore Regasification Deal With Petronet LNG

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Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) has announced a long-term regasification agreement through its subsidiary Performance Chemiserve Ltd, partnering with Petronet LNG Ltd to secure liquefied natural gas (LNG) supply for its manufacturing operations. The deal is valued at Rs 1,200 crore and spans 5.5 years, marking a strategic milestone in DFPCL’s energy sourcing and downstream integration.

Key Highlights From the Agreement

- The contract covers regasification of approximately 25.6 TBTUs of LNG annually at Petronet’s Dahej terminal in Gujarat
- Supply is scheduled to begin between May and July 2026 and continue through December 31, 2031
- The agreement includes a 20 percent upside potential linked to volume escalation and ancillary services
- Regasified LNG will be used primarily at DFPCL’s Taloja manufacturing units, supporting ammonia and nitric acid production
- The deal enhances Petronet’s terminal utilization and long-term business visibility, with Dahej among the busiest regas terminals globally

Strategic Context and Industry Impact

- The agreement follows DFPCL’s earlier LNG supply pact with Norway’s Equinor, reinforcing its gas-to-ammonia value chain
- Petronet handled 18 MMTPA of LNG in FY25 across Dahej and Kochi terminals, with Dahej playing a central role in India’s clean energy transition
- The partnership reflects growing private sector participation in India’s LNG infrastructure and demand-side diversification

Outlook

With this regasification deal, Deepak Fertilisers secures a reliable feedstock pipeline while Petronet strengthens its downstream linkages—advancing India’s industrial energy resilience.

Sources: CNBC-TV18, Business Today, Equinor, The Hindu Business Line, Petronet LNG Ltd regulatory filings, Deepak Fertilisers corporate disclosures