JERA Signs First Long-Term LNG Export Deal with India’s Torrent Power

JERA and Torrent Power Seal Landmark 10-Year LNG Supply Agreement

Japan’s largest power generator, JERA , has concluded its first long-term liquefied natural gas (LNG) export agreement with Torrent Power , marking a significant advancement in Japan–India energy collaboration. The deal is aimed at supporting India’s rising power and industrial requirements while allowing Japan to optimise LNG utilisation according to its own seasonal demand cycles.

Key Features of the Long-Term Supply Contract

Beginning in 2027 , JERA will deliver four LNG cargoes per year to Torrent Power under a 10-year arrangement. The supplies will be provided on a delivered basis , ensuring reliable access to imported fuel for Torrent Power’s expanding operations across multiple states. This agreement is JERA’s first-ever long-term LNG export contract with an Indian utility , signalling a new era of strategic commercial engagement.

Supporting India’s Clean Energy Transition

Torrent Power plans to channel the LNG supplies toward its 2,730 MW power generation portfolio , boosting efficiency and reliability. Beyond electricity generation, the company will distribute LNG to domestic consumers, small and medium industries and transport networks, aligning with India’s broader objectives of diversifying energy sources and reducing dependence on coal.

Seasonal Complementarity Strengthens the Partnership

JERA emphasised that energy demand patterns in Japan and India complement each other. By diverting cargoes during Japan’s low-consumption periods to India’s peak summer demand, both nations benefit from improved supply stability, logistical efficiency and cost optimisation .

Exam Oriented Facts

• Agreement: Four LNG cargoes per year for 10 years starting 2027.

• JERA: Japan’s largest power generator; JV of TEPCO and Chubu Electric.

• Torrent Power: Operates 2,730 MW generation capacity.

• Key advantage: Utilises seasonal demand differences between Japan and India.

JERA’s Expanding Global LNG Strategy

The company reiterated its intention to broaden its LNG portfolio across the Middle East, Asia and the United States. This diversification enhances resilience against market volatility and supports long-term supply commitments to partners such as Torrent Power.