A wholly-owned subsidiary of Deepak Nitrite Limited announced that it will supply propylene and hydrogen to Petronet LNG Limited (PLL).
The wholly-owned subsidiary, Deepak Phenolics Limited, will supply 250 kilotons per annum (KTPA) of propylene and 11 KTPA of hydrogen from its Petronet Petrochemical Project in Dahej, Gujarat, as stated by Deepak Nitrate in an exchange filing. For this, the boards of both companies approved a binding term sheet.
The arrangement spans 15 years from the initial delivery of propylene and hydrogen. A Definitive Agreement will be formalized in due course, solidifying this strategic partnership between DPL and PLL in the realm of chemical off-take.
Shares of Deepak Nitrate have gained 14 percent since January 1 and 7 percent over the last year.
Deepak Nitrate reported a 17.5 percent year-on-year (YoY) rise in net profit at Rs 205.1 crore for the second quarter ending September 30, 2023. The company’s revenue from operations declined 9.4 percent to Rs 1,778.1 crore against Rs 1,961.7 crore in the corresponding period of the preceding fiscal.
Deepak Nitrite produces a spectrum of chemicals, including agrochemicals, colorants, rubber, pharmaceuticals, speciality, and fine chemicals. Petronet LNG Limited provides services such as regasification, storage and reloading, bunkering, gassing-up and cooling-down facilities, and LNG truck loading facilities.
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