Torrent Power has inked a pact with Japanese firm JERA to get a supply of up to 0.27 MMTPA of LNG for 10 years, starting from 2027.
The company said in its regulatory filing that the LNG procured under this agreement will be strategically utilised to operate its 2,730 MW combined cycle gas-based power plants across India. The company also noted that the gas supply will help it meet rising electricity demand, support peak-hour requirements and balance renewable energy generation.
Torrent Gas to benefit
The supply will also strengthen gas availability for Torrent Gas, the group’s city gas distribution arm, which provides fuel to households, commercial and industrial users, 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.” The company said in its BSE release.
More LNG procurement under consideration
Torrent Power and Torrent Gas plan to explore more medium- and long-term LNG supply deals. The move comes as the companies look to take advantage of lower LNG prices and cater to rising demand from their power plants and CGD networks.
The company said the expansion of its LNG portfolio will help improve fuel diversity and ensure reliable energy supply for its customers.
Share price of Torrent Pharma
The share price of Torrent Pharma closed in the red on Monday, declining 2.44%. On a YTD basis, the stock has fallen 15.62% so far this year.