Japan’s JERA has signed its first long-term LNG supply agreement outside Japan with India’s Torrent Power, JERA announced on Monday.
Under the terms of the deal, JERA will supply four LNG cargoes per year, equivalent to approximately 270,000 tonnes, over 10 years starting in 2027. The cargoes will be delivered on an ex-ship basis from JERA’s global LNG portfolio.
The LNG will be utilised by Torrent Power to fuel its 2.7-GW portfolio of combined-cycle generation assets and will support the company’s City Gas Distribution division, which supplies gas to household, commercial and industrial customers through a fleet of compressed natural gas vehicles.
The deal will allow JERA to capitalise on seasonal gas consumption patterns and increase the utilisation of its LNG fleet during lower-demand months in Japan, which coincide with higher-demand periods in India, also improving energy supply stability across both markets.
“Aligned with JERA’s growth strategy, this agreement marks an important step in diversifying our procurement and sales portfolio while contributing to the region’s growing energy needs. Expanding into high-growth markets such as India allows us to broaden our LNG capabilities in ways that complement regional demand patterns,” said Ryosuke Tsugaru, JERA’s chief low-carbon fuel officer.
JERA is Japan’s largest power generation company and one of the world’s top LNG buyers. It engages in upstream gas production, LNG projects, fuel logistics and power generation, and is aiming to grow its LNG portfolio in Asia, the Middle East and the USA.