Equinor’s 15-Year LNG Agreement With Deepak Fertilisers Enters Supply Phase, Deepening India–Norway Energy Links

Norwegian energy major Equinor and India’s Deepak Fertilisers and Petrochemicals Corporation Limited have moved into the operational phase of a long-term LNG agreement that will supply up to 0.65 million tonnes of liquefied natural gas annually to India for 15 years. The agreement, originally signed in February 2024, was structured to begin supplies in 2026 and is now becoming part of Deepak Fertilisers’ long-term feedstock strategy.

The arrangement is one of the more substantial commercial energy links between a Norwegian company and an Indian private-sector industrial group. It connects Equinor’s expanding global LNG portfolio with Deepak Fertilisers’ ammonia, fertiliser and industrial chemicals operations in India.

Up to 0.65 Million Tonnes of LNG a Year

Under the agreement, Equinor will supply Deepak Fertilisers with up to 0.65 million tonnes of LNG every year for 15 years. The LNG will be delivered to the west coast of India, where it will be regasified and transported through pipeline infrastructure to support Deepak Fertilisers’ manufacturing operations.

The LNG is intended primarily as feedstock for ammonia production. Ammonia is a key input for fertilisers and also supports a broader chain of industrial chemicals. By securing long-term gas supplies, Deepak Fertilisers is seeking greater stability in a business where feedstock costs can fluctuate sharply with international energy markets.

Deepak Fertilisers Strengthens Its Gas-to-Ammonia Chain

Deepak Fertilisers has been steadily increasing backward integration into ammonia production. Its manufacturing strategy is built around creating a more secure chain from natural gas to ammonia and then into downstream products such as fertilisers, nitric acid, mining chemicals and industrial chemicals.

The company’s greenfield ammonia plant has become an important part of this strategy. Long-term LNG supplies from Equinor give Deepak Fertilisers greater visibility over raw-material availability and reduce exposure to short-term disruptions in imported gas markets.

The agreement also gives the company more flexibility in managing its feedstock mix. Deepak Fertilisers has indicated that part of the LNG could be traded in the Indian market depending on operational requirements, while the bulk remains connected to captive industrial use.

Long-Term Contract Reduces Exposure to Price Volatility

One of the main advantages of the Equinor agreement is its duration. A 15-year supply structure gives Deepak Fertilisers a greater degree of certainty over gas availability and allows the company to plan future ammonia and chemical production around a stable long-term supply arrangement.

The company has described the contract as part of a broader effort to reduce vulnerability to global gas-price volatility. Long-term procurement, combined with hedging and integrated ammonia production, can help reduce sudden cost shocks and improve planning for downstream manufacturing.

This is especially important for fertiliser and chemical producers because natural gas is not simply an energy source. It is also a direct feedstock, meaning changes in gas prices can have an immediate effect on production economics.

Equinor Uses Its Global LNG Portfolio to Supply India

Equinor is supporting the Indian contract through a broader LNG portfolio that includes Norwegian gas production and long-term LNG supply agreements from the United States.

The company has been expanding its global LNG business with the aim of increasing flexibility between European and Asian markets. Its strategy is based on combining production, shipping, trading and long-term offtake contracts so that cargoes can be directed to markets where demand is strongest.

India is increasingly important within this framework. The country’s demand for natural gas is being driven by city-gas networks, industry, fertiliser production, refining and the wider energy transition.

The Deepak Fertilisers agreement gives Equinor a long-term industrial customer in one of Asia’s fastest-growing energy markets.

India Becomes a More Important LNG Market

India’s natural-gas demand continues to expand as the country increases the role of gas in industry and energy use. Fertiliser and chemical manufacturing remain particularly important because ammonia production requires large and reliable volumes of natural gas.

For Equinor, this creates a market where LNG demand is connected not only to power generation but also to industrial production. The Deepak Fertilisers contract therefore provides a relatively stable source of demand compared with purely spot-market cargo sales.

The long-term nature of the agreement also reflects a wider trend in Asian LNG markets, where buyers increasingly seek supply security through multi-year contracts rather than depending entirely on spot purchases.

West Coast Infrastructure Supports the Supply Chain

The LNG supplied by Equinor will arrive on India’s west coast, where regasification terminals and pipeline networks will connect imported cargoes with industrial consumers.

Deepak Fertilisers has been working to ensure access to the necessary terminal and pipeline infrastructure. This is essential because an LNG contract by itself does not guarantee industrial supply. Reliable regasification capacity and downstream transport are equally important.

The existence of west coast LNG terminals and pipeline connectivity allows the company to integrate imported gas directly into its manufacturing operations.

Scope Extends Beyond LNG

The Equinor–Deepak Fertilisers relationship could eventually move beyond LNG supply.

Both companies have previously indicated interest in exploring cooperation involving petrochemical feedstocks such as propane and ethane. They have also identified lower-carbon ammonia and industrial decarbonisation as possible areas for future engagement.

That creates the potential for the partnership to evolve into a broader energy and industrial relationship rather than remain limited to a single commodity contract.

For Deepak Fertilisers, lower-carbon ammonia and more efficient feedstock management could become increasingly important as global chemical and fertiliser markets place greater emphasis on carbon intensity. For Equinor, such cooperation would deepen its industrial presence in India.

A Significant India–Norway Industrial Link

The agreement has significance beyond the two companies because Equinor is one of Norway’s most important energy companies and remains majority owned by the Norwegian state.

Deepak Fertilisers is one of India’s leading industrial chemical and fertiliser groups, making the contract a substantial commercial connection between Norway’s energy sector and India’s manufacturing economy.

The timing is also relevant because India and Norway have been expanding cooperation across energy, green industry, maritime technology and sustainability. The Equinor–Deepak arrangement adds a concrete commercial dimension to that broader bilateral relationship.

Supply Phase Gives the Agreement New Importance

The significance of the agreement has increased in 2026 because it is moving from a future contractual commitment into an active supply relationship.

For Deepak Fertilisers, the contract strengthens feedstock security for ammonia production and helps support a more integrated manufacturing model. For Equinor, it provides long-term access to an important Indian industrial customer and strengthens its position in the Asian LNG market.

The 15-year structure gives both companies the stability needed to deepen cooperation over time. It also creates room for future expansion into petrochemical feedstocks, lower-carbon ammonia and other industrial energy applications.

As India increases its demand for reliable gas supplies and strengthens domestic manufacturing, long-term arrangements of this kind are likely to become increasingly important. The Equinor–Deepak Fertilisers agreement stands out as a durable India–Norway energy partnership linking upstream LNG supply with downstream Indian industrial production.

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References

Equinor — 15-year LNG agreement with Deepak Fertilisers, February 2024.

Deepak Fertilisers and Petrochemicals Corporation Limited — Announcement of long-term LNG supply agreement with Equinor.

Deepak Fertilisers — FY2024 and FY2025 corporate disclosures on commencement of LNG supplies and ammonia integration.

Equinor — 2026 updates on expansion of its global LNG portfolio.

India–Norway official bilateral statements on energy, green industry and strategic cooperation.

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