Deepak Fertilisers, PCL sign long-term regasification pact with Petronet LNG

Deepak Fertilisers & Petrochemicals Corporation, along with its step-down subsidiary Performance Chemiserve (PCL), has entered into a long-term regasification agreement with Petronet LNG (PLL), India?s leading LNG infrastructure company.

Under the terms of the agreement, Petronet LNG will regasify approximately 25 TBTUs of LNG annually?after an initial ramp-up period?primarily at its Dahej terminal. The regasified gas will be supplied mainly to Deepak Fertilisers and PCL?s manufacturing units in Taloja for internal consumption.

According to an exchange filing, the contract will be executed over a period of five years.

This agreement will help the company and PCL ensure the logistical and commercial arrangements required to receive imported LNG at their manufacturing facilities via the existing national gas grid in Taloja, Mumbai, supporting the delivery of their integrated gas-to-ammonia-to-chemicals value chain strategy.

With this last-mile regasification contract, the company said it would be strategically positioned to deliver a full value chain?from gas to ammonia to building-block nitric acid and further downstream to products such as NPK fertilizers, industrial chemicals, and mining chemicals. The company emphasized that its forward integration journey toward delivering customised solutions and specialised products would gain further foundational strength from this end-to-end arrangement. It also expects this tie-up to support a risk-mitigated and value-accretive product portfolio aligned with India's long-term growth story.

Deepak Fertilisers and Petrochemicals Corporation (DFPCL) is among the India?s leading manufacturers of industrial chemicals and fertilisers. With a strong presence in technical ammonium nitrate (mining chemicals), industrial chemicals and crop nutrition (fertilisers), the company supports critical sectors of the economy such as infrastructure, mining, chemicals, pharmaceutical and agriculture.

Petronet LNG was formed to develop, design, construct, own, and operate liquefied natural gas (LNG) import and regasification terminals in India.

Shares of Deepak Fertilisers and Petrochemicals Corporation rose 0.01% to Rs 1,580, while shares of Petronet LNG declined 1.72% to Rs 300.05 on the BSE.

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