Torrent Power Ltd set to procure LNG from BP Singapore Pte. Limited

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 MMTPA of LNG from 2027 to 2036.

The LNG procured under this agreement will be strategically utilized 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 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's share in the energy mix to ~15% by 2030 as well as strengthening India's energy security.

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 to meet energy supply needs of customers.

Shares of Torrent Power Limited was last trading in BSE at Rs. 1396.45 as compared to the previous close of Rs. 1373.45. The total number of shares traded during the day was 8781 in over 712 trades.

The stock hit an intraday high of Rs. 1399.50 and intraday low of 1366.45. The net turnover during the day was Rs. 12184556.00.

Source : Equity Bulls

Keywords

TorrentPower INE813H01021 LNGProcurement BPSingapore