Deepak Fertilisers, PCL enter into long-term agreement with Petronet LNG

Shares of Deepak Fertilisers closed 1.4% lower on Thursday at ₹1,588 apiece amid broader weakness in the company.

Deepak Fertilisers and Petrochemicals Corporation (DFPCL) and Performance Chemiserve (PCL), a step-down subsidiary of the company, have entered into a long-term agreement with Petronet LNG (PLL), India’s premier LNG infrastructure company, for the regasification of Liquefied Natural Gas (LNG). Building upon the Long-term LNG contract entered into with Norwegian giant, Equinor ASA, the company now ties up the last mile connectivity with a regasification contract with Petronet.

The aforesaid agreement will help the company and PCL in ensuring logistical and commercial arrangements required to receive imported LNG to its manufacturing facilities via the existing national gas grid in Taloja, Mumbai, helping deliver its integrated Gas-to-Ammonia-to-Chemicals value chain strategy. The contract is for a period of five years.

With the last mile Regassification Contract, the company will be uniquely placed to advantageously deliver a Value-Chain right from Gas to Ammonia to Building Block Nitric Acid, taking it right up to the downstream final products such as NPK Fertilisers, Industrial Chemicals and Mining Chemicals. Its Forward Integration journey to Customised Solutions and Specialities for each of its segments will get further foundational strength with this end-to-end tie-up, now promising to deliver a holistic risk-mitigated and value accretive boutique basket of products and services deeply aligned with the India Growth Story.

Deepak Fertilisers and Petrochemicals Corporation (DFPCL) is among India’s leading producers of fertilisers and industrial chemicals.