Japan’s JERA, the country’s largest power producer, has signed its first long-term liquefied natural gas (LNG) supply agreement outside Japan with India’s Torrent Power.
Under the 10-year deal beginning in 2027, JERA will supply four LNG cargoes a year, around 270,000 tonnes annually, on a delivered ex-ship basis from its global LNG portfolio.
Torrent Power will use the LNG to support rising electricity demand in India, operate its 2,730-megawatt fleet of gas-based power plants and balance intermittent renewable generation.
The fuel will also supply the company’s city gas distribution arm, Torrent Gas, which serves households, commercial and industrial consumers and compressed natural gas vehicles.
JERA said the partnership takes advantage of the complementary seasonal demand profiles of Japan and India. Supplies during India’s peak periods allow the Japanese utility to optimize use of its fleet during lower-demand months at home, contributing to more stable supply across both markets.
“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,” said Ryosuke Tsugaru, JERA’s chief low carbon fuel officer.