Torrent Power Limited (“TPL”) acquired JERA Co., Inc., Japan’s largest power generation company. (“JERA”), also a global leader in the LNG value chain, has signed a long-term Sale and Purchase Agreement (SPA). This agreement will be applicable for 10 years starting from 2027 and under this, 0.27 MMTPA of LNG will be supplied.
TPL will use the LNG purchased under this agreement in strategic ways, including managing its 2,730 MW combined cycle gas-fired power plants (GBPPs) in India to meet the country’s growing energy demand, support peak demand and balance renewable energy. It will also cater to the growing LNG demand of Torrent Group’s City Gas Distribution (CGD) company – Torrent Gas Limited (TGL), thereby ensuring supply of gas to domestic, industrial, commercial customers and CNG vehicles.
This agreement is an important strategic step that solidifies Torrent’s commitment to clean energy. This ensures long-term availability of LNG at affordable rates for power generation and gas distribution, and strengthens India’s energy security by significantly contributing to the Government of India’s target of increasing the share of natural gas in the energy mix to ~15% by 2030.
Taking advantage of the fall in LNG prices, tpl And TGL is keen to purchase medium and long-term LNG to meet growing demand from its GBPPs and CGD network, with the aim of diversifying its portfolio and reliably meeting the energy supply needs of its customers.
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