Deepak Fertilisers and Petrochemicals Corporation has novated its long-term liquefied natural gas (LNG) supply agreement to its wholly-owned subsidiary, Deepak Globalchem PTE. LTD (DGPL). The agreement, originally signed with Equinor ASA on 19th February 2024, allows for the supply of up to 0.65 million tonnes of LNG annually over a 15-year period starting in 2026.
The novation agreement, executed on 25th March 2026, transfers all rights and obligations under the original LNG supply agreement from Deepak Fertilisers to DGPL. The terms of the supply arrangement remain unchanged, ensuring continuity in the commercial aspects of the deal.
DGPL, based in Singapore, is a wholly-owned subsidiary of Deepak Fertilisers, with 100% of its share capital held by the parent company. As part of the novation, DGPL assumes the role of buyer under the LNG supply agreement, while Deepak Fertilisers is released from its obligations post-novation. The corporate guarantee support provided by Deepak Fertilisers remains subject to agreed conditions.
The transaction does not qualify as a related party transaction, as DGPL is a subsidiary of Deepak Fertilisers and the agreement is executed at arm’s length. No shares are being issued as part of this transaction, and there are no loan agreements or material cumulative loans involved.
This strategic move aligns with Deepak Fertilisers’ broader objectives of streamlining its operations and enhancing its global presence through its subsidiary network.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).