Deepak Fertilisers soars over 10% after LNG supply deal with Norway's Equinor

Deepak Fertilisers Share Price: Deepak Fertilisers shares soared over 10 per cent in morning deals on BSE on Tuesday (February 20, 2024) after the company signed a long-term supply agreement for LNG supply with Norway's Equinor.

The Deepak Fertilisers stock was trading up by 8.09 per cent, or Rs 40.00, at Rs 534.40 at 9:50 am on Tuesday.

The stock that closed at 494.40 on Monday began its journey at Rs 518.65 on Tuesday to jump to the day's high of Rs 546.00, a 10.44 per cent rise from its previous close.

What is Deepak Fertilisers' deal with Equinor? 

Deepak Fertilisers said that it has entered into a long-term supply agreement for liquefied natural gas (LNG) with Equinor, an international energy company headquartered in Norway.

"With this tie-up, DFPCL strengthens its value chain with an attractive long-term LNG contract to solidify its value chain from Gas to Ammonia to various downstream Fertilisers, Industrial Chemicals and Mining Chemicals. This end-to-end tie-up shall establish a strong long-term foundation for all of DFPCL's product segments," the company said in a statement.

This agreement is for annual supplies of up to 0.65 million tonnes of LNG over a period of 15 years, beginning in 2026. 

"The tie-up provides room for trading some LNG parcels in the growing LNG demands in India as well as accommodating DFPCL’s growing captive needs. The LNG will be delivered to the west coast of India," the company said.