Petronet LNG signs Rs 1,200 cr regasification deal with Deepak Fertilisers subsidiary

Performance Chemiserve Ltd (PCL), a wholly owned subsidiary of Deepak Mining Solutions Ltd (DMSL) which is a wholly owned subsidiary of Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) and Petronet LNG Ltd (PLL) have entered into a 5.5-year agreement for regasification of LNG to be imported by DFPCL group.

Petronet LNG said the agreement will generate revenue of about Rs 1200 crore for the company with an upside potential to generate an additional revenue of up to 20%, over the contract duration.

“In line with the agreement, commencing between May–July 2026, and ending on December 31, 2031, PLL will receive, store and regasify approximately 25.6 TBTUs of LNG annually, post an initial ramp-up period in calendar year 2026, at its Dahej terminal,” the company said in a statement.

The regasified gas will be primarily utilised in manufacturing units of DFPCL group at Taloja.

With a turnover of approximately Rs 51,000 crore in FY 2024–25, PLL plays a vital role in India’s energy ecosystem, contributing about 33% of the country’s total natural gas supply.

This agreement further expands the long-term business horizons of PLL, an energy & infrastructure company. PLL handled around 18 mmtpa in FY 2024-25 through its two terminals with Dahej being the flagship and one of the busiest regas terminals in the world.

Earlier, an LNG sale and purchase agreement was signed by DFPCL with Equinor, a global energy major headquartered in Norway. Now, the regasification agreement has been signed between PLL and PCL, a leading producer of fertilizers and industrial chemicals using natural gas and a DFPCL group company. These agreements reinforce DFPCL Group’s strategic position across the value chain—from Natural Gas to Ammonia, further downstream into Building Block Nitric Acid and into a diversified portfolio of NPK fertilisers, industrial chemicals, and mining chemicals.

A K Singh, MD & CEO, PLL said, “We welcome DFPCL to our growing portfolio of valued partners. Such collaborations not only augment utilization of our expanded regasification capacity but also contribute meaningfully to the nation’s energy security and industrial growth. This agreement reinforces PLL’s position as a key energy/infrastructure provider there-by supporting the vision of the government of India in increasing the share of natural gas in India’s energy basket.”

Sailesh C Mehta, CMD, DFPCL said, “This agreement marks a major milestone in our long-term vision to create a strong, reliable, and efficient supply chain—from natural gas to value-added downstream products. It will improve our operational efficiency and enhance our competitiveness by ensuring consistent access to cost-effective natural gas, especially for our Ammonia and related product lines.”