JERA Signs Historic LNG Export Deal with India’s Torrent Power

Japan’s leading power generator, JERA, has entered into a significant long-term liquefied natural gas (LNG) export agreement with India’s Torrent Power. The deal, announced on December 8, 2023, involves the delivery of four LNG cargoes annually over a period of ten years, starting in 2027. This marks JERA’s first foray into a long-term export arrangement with an Indian company.

Under the terms of the agreement, the LNG will be supplied on a delivered basis, primarily for Torrent Power’s 2,730 megawatt (MW) capacity power plants across India. In addition to powering its facilities, Torrent Power plans to utilize the LNG for residential use, small industries, and the transportation sector. This multifaceted approach aims to enhance energy availability in regions experiencing high demand.

Strategic Partnership and Seasonal Demand

The partnership between JERA and Torrent Power is strategically designed to optimize the seasonal demand patterns in both countries. According to JERA’s statement, the arrangement will allow the company to utilize its global fleet more effectively. During Japan’s lower demand months, JERA will supply LNG to Torrent Power during India’s peak demand summer months. This synergy is expected to create a more resilient energy supply chain for both nations.

Looking ahead, JERA intends to expand its LNG portfolio, focusing on key regions including the Middle East, Asia, and the United States. This expansion is part of JERA’s strategy to build resilience against market volatility and ensure a steady supply of energy resources.

JERA operates as a joint venture between Tokyo Electric Power and Chubu Electric Power, two of Japan’s largest energy companies. The collaboration with Torrent Power reflects JERA’s commitment to diversifying its export markets and responding to global energy demands.

As energy needs continue to evolve, this landmark agreement not only strengthens ties between Japan and India but also highlights the growing importance of LNG in meeting the energy requirements of developing economies.