Ahmedabad-based Torrent Power Ltd. (TPL) has signed a long-term sales and purchase agreement (SPA) with BP Singapore Pte Ltd, securing the supply of up to 0.41 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from 2027 to 2036.
Strategic Move for Energy Security
The LNG procured under this agreement will be strategically utilized by Torrent Power to operate its 2,730 MW combined cycle gas-based power plants (GBPPs) across India, ensuring reliable electricity supply and supporting peak demand periods.
Additionally, the deal will benefit Torrent Gas Ltd. (TGL), the company’s city gas distribution (CGD) arm, by catering to its rising LNG requirements for households, commercial and industrial consumers, and CNG vehicles.
Government’s Push for Natural Gas Expansion
India aims to increase natural gas’s share in the energy mix to 15% by 2030, up from the current 6%, as part of its broader energy transition strategy. Torrent Power’s latest agreement aligns with this vision, reinforcing its commitment to clean energy and sustainable power generation.
Future Outlook & Expansion Plans
Taking advantage of softening LNG prices, Torrent Power and Torrent Gas plan to explore additional medium- and long-term LNG procurement to meet the growing demand from their GBPPs and CGD networks.
With a total installed generation capacity of 4,838 MW, including 2,730 MW of gas-based, 1,746 MW of renewable, and 362 MW of coal-based capacity, Torrent Power continues to strengthen its energy portfolio.
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