Deepak Nitrite Limited’s wholly-owned subsidiary, Deepak Phenolics Limited (DPL), has signed a deal with Petronet LNG Limited (PLL) for the supply of propylene and hydrogen. As per the agreement, DPL is set to receive 250 kilo tons per annum (KTPA) of propylene and 11 KTPA of hydrogen from PLL’s Dahej petrochemical project in Gujarat.
Propylene, a vital petrochemical is used in the production of various downstream goods such as polypropylene plastics, acrylic acid, and solvents. Similarly, hydrogen plays a critical role in DPL’s production processes, contributing to energy efficiency and operational optimisation.
The fifteen-year deal outlines the mutual confidence and commitment between DPL and PLL, offering a long-term perspective that enables DPL to plan production capacities and future investments with greater certainty, fostering sustainable growth. Furthermore, the geographical proximity of PLL’s Dahej facility to DPL’s operations ensures efficient logistics, minimising transportation costs and enhancing the overall appeal of the deal.
As a manufacturer of phenol and acetone, serving diverse industries like construction, automotive, and pharmaceuticals, Deepak Phenolics’ strategic partnership with PLL significantly strengthens its market position by securing its supply chain and boosting production capabilities. With a reliable source of propylene and hydrogen secured, DPL is well-positioned to optimise operations, explore new product lines, and expand its market reach.
As reported by Dalal Street Investment Journal, the deal holds broader implications for the Indian petrochemical industry. By fortifying domestic sourcing of propylene and hydrogen, DPL and PLL contribute to reducing India’s reliance on imported petrochemicals, thereby enhancing the nation’s self-sufficiency in this critical sector.
