HPL Signs 10-Year Naphtha Deal with QatarEnergy

Kolkata, Jun 13 (PTI) City-based Petrochemical major Haldia Petrochemicals Limited (HPL) has entered into a strategic agreement with QatarEnergy, ensuring a steady supply of naphtha for the coming decade, an official said on Thursday.

The contract stipulates that QatarEnergy will provide up to two million tons of naphtha to HPL for 10 years through its Singapore-based subsidiary, HPL Global Pte Limited, commencing from the second quarter of 2024.

This long-term agreement, signed by HPL Global Pte Ltd and QatarEnergy on behalf of Qatar Petroleum for the Sale of Petroleum Products Company Ltd. (QPSPP), marks the most substantial commitment between the two entities to date, a company statement said without divulging the value of the deal.

Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President and CEO of QatarEnergy, expressing satisfaction over the deal said, "It reinforces Qatar's dedication to contributing to India's economic expansion."

He also highlighted Qatar's role as a dependable energy provider to India, noting the joint efforts with strategic petrochemical end-users like HPL to satisfy the region's growing energy needs.

Purnendu Chatterjee, HPL chairman, said the agreement bolsters the longstanding partnership with QatarEnergy.

He emphasized that the agreement aligns with HPL's ongoing endeavors in business development and strategic investment, aimed at meeting global customer demands while maintaining product quality.

HPL stands as one of India's largest petrochemical companies, boasting an annual ethylene production capacity of 700,000 tons. The company has adopted process technologies from premier licensors to manufacture top-tier products, keeping safety and environmental sustainability at the forefront.