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Torrent Power Ink 10-Year LNG Procurement Agreement with Japan’s JERA

Torrent Power has signed a 10-year deal with Japan’s JERA to procure up to 0.27 MMTPA of LNG from 2027. The LNG will be used to operate Torrent Power’s 2,730 MW gas-based power plants in India and support its city gas distribution network.

December 09, 2025. By Mrinmoy Dey

Torrent Power has announced that the company has signed a long-term Sale and Purchase Agreement (SPA) with Japanese company JERA to procure up to 0.27 MMTPA of LNG for a period of 10 years starting from 2027.

Under the agreement, JERA will supply four LNG cargoes per year, approximately 270,000 tonnes per annum, on a Delivered Ex-Ship (DES) basis from its extensive LNG portfolio, JERA said in a statement.

The LNG procured under this agreement will be strategically utilised by Torrent Power, including to operate its 2,730 MW portfolio of combined cycle gas-based power plants in India, to meet the country’s rising power demand, support peak demand periods, and balance renewables generation, Torrent Power said in a statement.

It will also support the growing LNG requirement of the Torrent Group’s City Gas Distribution (CGD) arm – Torrent Gas Ltd.’s (TGL), to ensure reliable supply of gas for households, commercial and industrial consumers and compressed natural gas (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 about 15 percent by 2030 as well as strengthening India’s energy security,” stated Torrent Power.

The partnership strategically leverages the complementary seasonal demand patterns of Japan and India. By supplying to Torrent Power during India’s high demand windows, JERA can optimise utilisation of its global fleet during Japan’s lower-demand months, enhancing overall supply stability across both markets.

Ryosuke Tsugaru, Chief Low Carbon Fuel Officer at JERA, said, “Aligned with JERA’s Growth Strategy, this agreement marks an important step in diversifying our procurement and sales portfolio while contributing to the region’s growing energy needs. Expanding into high-growth markets such as India allows us to broaden our LNG capabilities in ways that complement regional demand patterns and enhance our ability to respond to different demand cycles, enabling us to continue delivering stable energy across Japan and Asia.”

The company stated that it will continue to build a robust LNG portfolio across the Middle East, Asia, and the United States to strengthen resilience against market volatility. Leveraging JERA Global Market’s trading and optimisation capabilities, the company aims to enhance cost competitiveness and expand its LNG sales footprint into the Asian markets, it said.

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Business

Torrent power

JERA

LNG Sale and Purchase Agreement

Ryosuke Tsugaru

Gas-based power plants

City gas distribution network