Japan’s JERA Signs LNG Deal with Torrent Power

Japan’s leading power generator JERA has finalised its first long-term liquefied natural gas export agreement with India’s Torrent Power, marking a strategic milestone in energy cooperation between the two nations. The arrangement is structured to support India’s rising electricity and industrial demand while optimising Japan’s seasonal LNG requirements.

Details of the Long-Term Supply Agreement

Under the agreement, JERA will supply four LNG cargoes annually to Torrent Power for ten years beginning in 2027. The deliveries will be made on a delivered basis, ensuring assured supply for Torrent Power’s operations across multiple regions. This is JERA’s inaugural long-term export contract with an Indian buyer.

Use of LNG Across Power and Consumer Segments

Torrent Power plans to utilise the fuel to support its 2,730 MW power generation capacity. In addition to electricity production, the company will distribute LNG to households, small industries and the transport sector. This diversified usage aligns with India’s broader transition toward cleaner and more reliable energy sources.

Seasonal Demand Complementarity

JERA noted that Japan and India exhibit contrasting seasonal energy patterns. The company will deploy its global LNG fleet during Japan’s lower-demand periods and direct cargoes to India during its high-demand summer months. This model strengthens supply stability and cost efficiency for both partners.

Exam Oriented Facts

• The deal supplies four LNG cargoes annually for ten years starting 2027.
• JERA is Japan’s largest power generator and a joint venture of TEPCO and Chubu Electric Power.
• Torrent Power operates 2,730 MW of power generation capacity.
• The agreement leverages seasonal demand differences between Japan and India.

JERA’s Global Portfolio Strategy

The company stated that it will continue expanding its LNG portfolio across regions including the Middle East, Asia and the United States. This diversification aims to increase resilience against global market fluctuations and strengthen long-term supply security for partners such as Torrent Power.