Japan’s JERA signed its first liquefied natural gas supply contract with long-term liquefied natural gas (LNG) supply (LNG) outside its home country, cementing a key partnership with Torrent Power, one of India’s leading energy companies.
LNG contract to supply growing demand in India
The agreement establishes the shipment of four annual LNG cargoes, equivalent to some 270,000 tons, under the ex-vessel delivery (ESD) modality. This supply will begin in 2027 and will last for a decade, destined for Torrent Power’s gas-fired combined cycle plants, which total 2,730 MW.
The collaboration responds to a strategic approach: JERA seeks to take advantage of the different seasonal demand peaks between Japan and India to maximize the utilization of its global LNG fleet. While Japan reduces its consumption in certain months, India increases its demand, allowing for a steady flow of supplies.
Boosting urban gas and energy transition
The imported gas will also will also go to Torrent Gas Ltd.the gas distribution unit of the Torrent Group. This measure seeks to cover the supply of homes, businesses and industries, as well as the supply of compressed natural gas (CNG) vehicles.
According to Ryosuke Tsugaru, responsible for low carbon fuels According to Ryosuke Tsugaru, JERA’s head of low-carbon fuels, this move is part of the company’s growth strategy: to expand its presence in high-growth markets such as India and strengthen its LNG trading portfolio, with a view to responding to market volatility and maintaining stability of supply in Asia.
Source: JERA
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