Deepak Fertilizers and Petrochemicals Enters Novation Agreement for LNG Supply
Deepak Fertilizers and Petrochemicals Corporation Limited announced on March 25, 2026, that it has entered into a Novation Agreement with Equinor ASA and Deepak Globalchem PTE. LTD. (DGPL), a wholly-owned subsidiary of the company. The agreement novates a long-term supply agreement for Liquefied Natural Gas (LNG) previously entered into with Equinor on February 19, 2024, to DGPL.The novated LNG supply arrangement provides for annual supplies of LNG up to 0.65 million tonnes for a period of 15 years, commencing from 2026. The terms of the new agreement mirror those of the original supply agreement.
Under the terms of the agreement, DGPL assumes all rights and obligations as the LNG buyer, while Deepak Fertilizers and Petrochemicals Corporation Limited is released from obligations following the novation date. The company will provide corporate guarantee support subject to agreed conditions.
DGPL is wholly owned by Deepak Fertilizers and Petrochemicals Corporation Limited, with the company holding 100% of its share capital. The transaction does not constitute a related party transaction.
The agreement was finalized around 6:42 pm on March 25, 2026. Additional information is available on the company's website at www.dfpcl.com.
| Particulars | Details |
|---|---|
| Parties Involved | Equinor ASA and Deepak Globalchem PTE. LTD. |
| Agreement Purpose | Novation of LNG supply agreement from Deepak Fertilizers to its subsidiary, DGPL |
| Agreement Size | Annual LNG supply of up to 0.65 million tonnes for 15 years |
| Shareholding | DGPL is a wholly-owned subsidiary (100% share capital) |
| Key Terms | DGPL assumes buyer obligations; Company released from obligations; corporate guarantee support by the Company |
| Relationship | DGPL is a wholly-owned subsidiary |
| Related Party Transaction | No |
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