India’s Ministry of External Affairs (MEA) has emphasised the significance of energy security as one of the country’s key priorities. On May 29, during a weekly press briefing, MEA spokesperson Randhir Jaiswal addressed concerns related to global energy supply issues stemming from conflicts in West Asia. He stated that India is actively working to diversify its energy sources and is open to partnerships with international allies, including Norway.

Responding to inquiries about upcoming gas shipments from Norway, Jaiswal reiterated that India’s policy focuses on enhancing energy security by diversifying import channels. He declared, “Energy security is very important for us. We are trying to diversify our sources from across the world. That is our policy right now, and we welcome whatever support we can get from various markets across the world.”

Long-Term Agreement with Equinor Fuels Energy Partnership

This call for diversification is underlined by the recent development involving Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), which has received its first liquefied natural gas (LNG) cargo from Norway. This shipment is part of a long-term agreement with Equinor, a Norwegian multinational energy company. The cargo was sourced from Equinor’s Hammerfest LNG facility and represents the start of a committed partnership aimed at establishing dependable LNG supply chains for the Indian industrial sector.

The agreement between DFPCL and Equinor entails a long-term supply arrangement that spans fifteen years, with the first deliveries scheduled to commence in 2026. The collaboration aligns with broader trade initiatives under the Trade and Economic Partnership Agreement (TEPA) that India signed with the European Free Trade Association (EFTA), which was ratified in the previous year. This partnership is seen as a strategic step in enhancing bilateral trade relations.

Equinor’s LNG supply primarily comes from its Hammerfest facility, supplemented by additional resources mainly from the United States. The gas will be utilised mainly as feedstock for ammonia production at DFPCL’s newly established fertiliser and petrochemical plant, which highlights the importance of this agreement to India’s industrial growth.

Projected LNG Supplies to Impact Indian Industry

This recent arrangement provides for an annual delivery of approximately 0.65 million tonnes—or about 9 terawatt-hours (TWh)—of LNG throughout the fifteen-year contract. This contractual framework is anticipated to play a significant role in addressing the rising energy demands of India’s industrial sectors, which are increasingly reliant on green and sustainable energy sources.

The establishment of this LNG supply chain is expected to enhance the resilience of Indian industries in the face of fluctuating global energy prices and supply challenges. By strengthening such international partnerships, India aims to mitigate potential risks associated with energy shortages and enhance the reliability of its energy infrastructure.

In conclusion, India’s proactive stance towards energy security, characterised by ongoing efforts to diversify supply sources and establish long-term international agreements, underscores its commitment to maintaining a stable energy supply. The collaboration with Equinor marks a significant milestone in this journey and serves as an example of India’s strategy to engage with global partners in pursuit of enhanced energy independence.

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