Indian energy company, Torrent Power, has signed a long-term sales and purchase agreement (SPA) with BP Singapore, a subsidiary of the UK energy major.
The SPA calls for the supply of up to 0.41 mill tonnes per annum of LNG, commencing in 2027 and continuing through 2036.
The LNG will be used to fuel Torrent’s 2,730 MW gas-based power plants to support India’s increasing power demand, peak load requirements, and renewable energy balancing, the company said.
The supply will also meet the growing gas requirements of Torrent Gas, the group’s city gas distribution (CGD) business, which services households, commercial and industrial customers, and CNG vehicles.
This was seen as a step towards boosting energy security and supporting India’s target of increasing its share of natural gas in the energy mix to 15% by 2030.
Torrent Power also plans to leverage the current soft LNG prices to explore additional medium- and long-term procurement opportunities.
