Deepak Nitrite Limited’s wholly-owned subsidiary, Deepak Phenolics Limited (DPL), has inked a fifteen-year deal with Petronet LNG Limited (PLL) for the supply of propylene and hydrogen.
This agreement, rooted in mutual confidence and commitment, holds broader implications for the Indian petrochemical sector, offering a glimpse into the future of self-sufficiency and sustainable growth.
The primary goal of this transformative partnership is to fortify Deepak Phenolics’ supply chain and enhance its production capabilities. With PLL’s Dahej petrochemical project in Gujarat set to supply 250 KTPA of propylene and 11 KTPA of hydrogen, Deepak Phenolics gains a reliable source for critical raw materials. This, in turn, empowers DPL to optimize its operations, explore new product lines, and expand its market reach in industries ranging from construction and automotive to pharmaceuticals.
Propylene, a vital petrochemical, is a cornerstone in the production of downstream goods such as polypropylene plastics, acrylic acid, and solvents. Hydrogen, the second component of the deal, plays a critical role in enhancing energy efficiency and operational optimization within DPL’s manufacturing processes. This technological synergy forms the backbone of Deepak Phenolics’ operations, contributing to the production of diverse goods essential for various industries.
Beyond the immediate benefits for Deepak Nitrite Limited, the deal between DPL and PLL holds broader implications for India’s petrochemical industry. By securing a domestic supply of propylene and hydrogen, DPL and PLL contribute significantly to reducing India’s reliance on imported petrochemicals. This move aligns with the nation’s goals of enhancing self-sufficiency and bolstering the domestic petrochemical sector.
