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Torrent Power Signs Long Term LNG Supply Agreement with Japan’s JERA

Written by: Team Angel OneUpdated on: 8 Dec 2025, 8:45 pm IST
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Torrent Power has entered into a long-term arrangement with JERA, Japan’s largest power generation company, to secure liquefied natural gas supplies for its power and city gas businesses.  

The agreement marks an important step in strengthening the company’s fuel security and supporting India’s broader gas transition plans.  

LNG Supply Deal Beginning 2027 

The agreement provides for supply of up to 0.27 MMTPA of LNG for 10 years, starting in 2027. Torrent Power plans to utilise this LNG across its 2,730 MW gas-based power plants to meet peak electricity demand and support renewable integration.  

It will also supply Torrent Gas, its city gas arm, enabling reliable access to natural gas for households, industries and commercial users. 

The company said the deal strengthens its long-term fuel planning and aligns with the government’s objective of increasing natural gas in the national energy mix.  

It also supports the firm’s intention to expand medium and long duration LNG procurement to meet rising consumption across both its power generation and CGD networks. 

Business Context 

Torrent Power views the agreement as a strategic addition to its portfolio, enhancing supply stability and enabling diversification of fuel sources.  

The company noted that the current softness in LNG prices has created an opportunity to lock in competitively priced volumes for long term use. 

Its integrated operations span power generation, transmission, distribution and city gas, with a portfolio of gas based, renewable and coal-based capacity. 

In distribution, the company serves more than 4.21 million customers across multiple cities and industrial centres, handling nearly 31 billion units of power annually. It is recognised for strong reliability metrics and low AT&C losses in its licensed areas. 

Read More: Torrent Power Q2 FY26 Earnings Results: Profit Surges 50% on Strong Merchant Power Sales! 

Torrent Power Share Price Performance  

As of December 08, 2025, at 3:11 PM, Torrent Power share price is trading at ₹1,257.30 per share, reflecting a decline of 2.51% from the previous closing price.  

Conclusion 

Torrent Power’s long term LNG arrangement with JERA reinforces its commitment to securing dependable fuel supply for its power and city gas operations. With growing demand and an expanding asset base, the agreement is positioned to support the company’s operational stability and long term growth. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Dec 8, 2025, 3:15 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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