Torrent Power Ltd set to procure LNG from JERA Co., Inc.
Torrent Power Ltd (“TPL”) has signed a long-term Sale and Purchase Agreement (SPA) with JERA Co., Inc. (“JERA”), Japan’s largest power generation company and a global leader across the LNG value chain for supply of up to 0.27 MMTPA of LNG for a period of 10 years starting from 2027.
The LNG procured under this agreement will be strategically utilized by TPL, including to operate its 2,730 MW Combined Cycle Gas-Based Power Plants(GBPPs) in India to meet the country’srising power demand, peak demand periods’ support, and balancing the Renewables. It will also support the Torrent Group’s City Gas Distribution (CGD) arm – Torrent Gas Ltd.’s (TGL), growing requirement of LNG to ensure reliable supply of gas for households, commercial and industrial consumers and CNG vehicles.
This agreement represents a significant strategic move, reaffirming Torrent’s commitment for clean energy, securing competitively priced LNG for long-term power generation and gas distribution, and contributes to the Government of India’s goal of increasing natural gas’s share in the energy mix to ~15% by 2030 as well as strengthening India’s energy security.
Taking advantage of softness in LNG prices, TPL along with TGL further intends to explore medium- and long-term LNG procurement in response to the growing demand from its GBPPs and CGD networks respectively, aiming to enhance its portfolio diversity and reliably to meet energy supply needs of customers.
