Deepak Fertilisers inks pact with Petronet LNG for regasification

Don't want to miss the best from Business Standard?

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) on Thursday entered into a long-term pact with Petronet LNG Ltd for regasification of Liquefied Natural Gas (LNG).

DFPCL, along with its step-down subsidiary Performance Chemiserve Ltd (PCL), have entered into the agreement for a period of five years.

Under the terms of the agreement, Petronet LNG will regasify approximately 25 TBTUs (Trillion British Thermal Units) of LNG annually, post an initial ramp-up period, primarily at its Dahej terminal, DFPCL said in a regulatory filing.

The regasified gas will be primarily supplied to the company and PCL's manufacturing facilities units at Taloja, Mumbai, for internal consumption, it said.

With the last mile regasification contract, the company will be uniquely placed to 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.