Torrent Power secures LNG supply agreement from BP Singapore; stock up 2%
Torrent Power Ltd has entered into a long-term sales and purchase agreement with BP Singapore for the supply of up to 0.41 MMTPA of LNG from 2027 to 2036.
- Jun 2, 2025,
- Updated Jun 2, 2025 6:08 PM IST
Torrent Power Ltd (TPL) has finalised a long-term Sales and Purchase Agreement (SPA) with BP Singapore Pte. Limited, securing the supply of up to 0.41 MMTPA of liquefied natural gas (LNG) from 2027 to 2036. This agreement marks a strategic initiative to secure competitively priced LNG, essential for TPL's operations in India. The announcement was made after market hours on Monday.
The LNG obtained through this contract will be strategically used by TPL for operating its 2,730 MW Combined Cycle Gas-Based Power Plants (GBPPs) across India. This move is designed to meet the rising power demands and support renewable energy integration during peak periods. Additionally, it aligns with the government’s objective to boost natural gas’s share in the energy mix to 15 per cent by 2030.
This agreement will support the Torrent Group's City Gas Distribution (CGD) arm, Torrent Gas Ltd. (TGL). The LNG will ensure a reliable gas supply for households, commercial and industrial users, as well as for compressed natural gas (CNG) vehicles, thereby bolstering energy security and reliability.
Capitalising on the current low LNG prices, TPL, along with TGL, intends to explore further medium- and long-term LNG procurement opportunities. This effort aims to meet the growing demand from its GBPPs and CGD networks, diversify its energy portfolio, and ensure consistent energy supply to customers.
This strategic agreement underscores Torrent's commitment to clean energy and securing competitive LNG pricing for long-term power generation and distribution. It also contributes to India’s energy policy goals, reinforcing the nation’s energy security.
The pact positions Torrent Power strategically in the energy sector, as the company continues to expand its LNG procurement and distribution capabilities. It highlights Torrent's proactive approach to resource enhancement amidst a challenging global energy market.
On the stock-specific, Torrent Power's stock closed 1.57 per cent higher at Rs 1,395 on Monday.
Torrent Power Ltd (TPL) has finalised a long-term Sales and Purchase Agreement (SPA) with BP Singapore Pte. Limited, securing the supply of up to 0.41 MMTPA of liquefied natural gas (LNG) from 2027 to 2036. This agreement marks a strategic initiative to secure competitively priced LNG, essential for TPL's operations in India. The announcement was made after market hours on Monday.
The LNG obtained through this contract will be strategically used by TPL for operating its 2,730 MW Combined Cycle Gas-Based Power Plants (GBPPs) across India. This move is designed to meet the rising power demands and support renewable energy integration during peak periods. Additionally, it aligns with the government’s objective to boost natural gas’s share in the energy mix to 15 per cent by 2030.
This agreement will support the Torrent Group's City Gas Distribution (CGD) arm, Torrent Gas Ltd. (TGL). The LNG will ensure a reliable gas supply for households, commercial and industrial users, as well as for compressed natural gas (CNG) vehicles, thereby bolstering energy security and reliability.
Capitalising on the current low LNG prices, TPL, along with TGL, intends to explore further medium- and long-term LNG procurement opportunities. This effort aims to meet the growing demand from its GBPPs and CGD networks, diversify its energy portfolio, and ensure consistent energy supply to customers.
This strategic agreement underscores Torrent's commitment to clean energy and securing competitive LNG pricing for long-term power generation and distribution. It also contributes to India’s energy policy goals, reinforcing the nation’s energy security.
The pact positions Torrent Power strategically in the energy sector, as the company continues to expand its LNG procurement and distribution capabilities. It highlights Torrent's proactive approach to resource enhancement amidst a challenging global energy market.
On the stock-specific, Torrent Power's stock closed 1.57 per cent higher at Rs 1,395 on Monday.