Deepak Fertilizers surges 10% on signing 15-year LNG deal with Norway’s Equinor

Shares of Deepak Fertilizers and Petrochemicals Corporation Ltd (DFPCL) gained over 10% on Tuesday after the company announced signing a 15-year supply agreement for liquefied natural gas (LNG) with Norwegian energy giant Equinor.

As part of the agreement, Deepak Fertilizers will be making annual supplies of up to 0.65 million tonnes over 15 years, starting from 2026. The LNG will be delivered to the west coast of India, the company said in a filing to the stock exchanges.

Deepak Fertilizers said that the tie-up will enable it to trade some LNG parcels in the growing demand for the gas in the country.

The leading fertilizers producer is at the advanced stage of tying up the regasification terminal with the gas pipeline grid connectivity to its plant's doorstep already in place, the company informed the bourses.

After the announcement of the long-term supply contract with Equinor, Deepak Fertilizers shares jumped as much as 10.56% to an intraday high of ₹546.7 apiece on the NSE.

Equinor, formerly known as Statoil, has been among the market leaders in the oil and gas sector over the last five decades. The company’s market capitalisation is valued at over $75 billion, with the majority of shares being owned by the Norwegian government. Equinor has a presence in over 30 countries globally.

Deepak Fertilizers and Petrochemicals Corporation Ltd. (DFPCL) is one of the leading manufacturers of industrial chemicals and fertilisers. The company owns and operates four plants across the country at Taloja in Maharashtra, Dahej in Gujarat, Srikakulam in Andhra Pradesh, and Panipat in Haryana.

Deepak Fertilizers shares closed at ₹512.00 apiece, up 3.55%, on the NSE.