Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) has entered a long-term agreement with Petronet LNG Limited (PLL) for the regasification of Liquefied Natural Gas (LNG). The contract, valued at ₹1,200 crore with a potential additional outlay of up to 20% over its five-year duration, will see Petronet LNG regasify approximately 25 TBTUs of LNG annually, primarily at its Dahej terminal, after an initial ramp-up period. The regasified gas will be supplied to DFPCL’s manufacturing facilities at Taloja for internal consumption.
Strategic Implications
The agreement ensures a stable supply of regasified LNG for Deepak Fertilisers’ manufacturing units at Taloja, enhancing operational efficiency and reliability. By securing a long-term regasification arrangement, DFPCL mitigates potential supply chain disruptions and price volatility associated with natural gas.
Operational Details
Petronet LNG will primarily utilize its Dahej terminal for the regasification process. The contract involves an initial ramp-up period, after which the full annual capacity of 25 TBTUs will be regasified. The regasified gas will be used internally by DFPCL for its manufacturing processes.
Financial Considerations
The contract is valued at ₹1,200 crore, with a provision for an additional outlay of up to 20% over the five-year period. This financial commitment underscores the strategic importance of a reliable LNG supply for DFPCL’s operations.