Torrent Power to buy LNG from BP Singapore

Time of India

2 days ago

Torrent Power has inked a deal with BP Singapore. It will buy LNG for ten years. The supply starts in 2027. The Ahmedabad based company will procure 0.41 million tonnes of LNG annually. Torrent Power will use the gas for its power plants. It will also support city gas distribution. The agreement boosts India's energy security.
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Ahmedabad-based Torrent Power Ltd has signed an agreement to buy up to 0.41 million tonnes per annum of LNG from BP Singapore for 10 years starting 2027, the company said on Monday.Torrent will use the liquefied natural gas (LNG) to generate electricity at its 2,730 megawatt gas-based power plants as well as city gas demand, it said in a statement."Torrent Power Ltd (TPL) has signed a long-term sales and purchase agreement (SPA) with BP Singapore Pte Limited, a subsidiary of global integrated energy company bp, for supply of up to 0.41 million tonnes per annum of LNG from 2027 to 2036," it said.The LNG procured under this agreement will be strategically utilised by TPL, including to operate its 2,730 MW combined cycle gas-based power plants (GBPPs) in India to meet the country's rising power demand, peak demand periods' support, and balancing the renewables.It will also support the Torrent Group's city gas distribution (CGD) arm - Torrent Gas Ltd's (TGL), growing requirement of LNG to ensure a reliable supply of gas for households, commercial and industrial consumers and 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' share in the energy mix to 15 per cent by 2030 as well as strengthening India's energy security," the statement said.Taking advantage of softness in LNG prices, TPL, along with TGL, further intends to explore medium- and long-term LNG procurement in response to the growing demand from its GBPPs and CGD networks, respectively, aiming to enhance its portfolio diversity and reliably meet energy supply needs of customers.Torrent Power, the Rs 29,165-crore integrated power utility of about Rs 45,000 crore Torrent Group, has an aggregate installed generation capacity of 4,838 MW comprising 2,730 MW of gas-based capacity, 1,746 MW of renewable capacity and 362 MW of coal-based capacity.Further, renewable projects of 3,154 MW and pump storage capacity of 3,000 MW are under development.Total generation and pump storage capacity, including projects under development is 7,992 MW and 3,000 MW, respectively.