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Torrent Power Signs 10-Year LNG Supply Deal with Japan’s JERA Starting 2027

Torrent Power has entered into a long-term Sale and Purchase Agreement (SPA) with Japan’s JERA to procure up to 0.27 MMTPA of LNG over a 10-year period beginning in 2027. Under the arrangement, JERA will deliver four LNG cargoes annually—amounting to roughly 270,000 tonnes each year—on a Delivered Ex-Ship (DES) basis from its diversified global LNG portfolio.

The imported LNG will be used strategically across Torrent Power’s operations. A significant share will fuel the company’s 2,730 MW fleet of combined-cycle gas-based power plants, helping meet rising electricity demand, support peak load management, and balance renewable energy fluctuations. The supply will also cater to the growing needs of Torrent Gas Ltd., the group’s city gas distribution arm, ensuring steady availability of natural gas for households, industries, commercial users, and CNG vehicles.

Torrent Power noted that the agreement strengthens its long-term energy security while aligning with India’s goal of increasing natural gas’s share in the national energy mix to around 15% by 2030. The deal also provides the company with competitively priced LNG for both power generation and gas distribution.

The partnership leverages the complementary seasonal LNG demand patterns of Japan and India. By supplying LNG to Torrent Power during periods of high demand in India, JERA can optimize the utilization of its global assets during Japan’s lower consumption months, enhancing supply stability across both markets.

Ryosuke Tsugaru, Chief Low Carbon Fuel Officer at JERA, said the agreement aligns with JERA’s growth priorities by expanding its presence into high-growth markets such as India. He added that diversification of procurement and sales channels allows the company to respond more effectively to regional demand cycles while strengthening energy security across Asia.

JERA also highlighted its plans to continue building a resilient LNG portfolio spanning the Middle East, Asia, and the United States. Through the trading and optimization capabilities of JERA Global Markets, the company aims to enhance its cost competitiveness and expand its LNG supply footprint throughout the Asian region.