BP shakes hands on multi-year LNG offtake with India’s Torrent Power

BP Singapore, a subsidiary of the UK-headquartered energy giant BP, has signed on the dotted line with India’s Torrent Power, part of Torrent Group, to supply liquefied natural gas (LNG) for the latter’s 2,730 MW combined cycle gas-based power plants in line with India’s push to up the natural gas ante in its energy mix to around 15% by the end of the decade.

Torrent Power’s move to secure fuel for its increasing power and city gas distribution businesses has led to a long-term sales and purchase agreement (SPA) with BP for the supply of up to 0.41 million metric tonne per annum (mtpa) of LNG, beginning in 2027 and continuing through 2036.

While the 2,730 MW combined cycle gas-based power plants are said to play a key role in meeting peak power demand and balancing renewables in India’s energy grid, this is also expected to cater to the growing requirements of Torrent Gas’ distribution network.

As India’s player is interested in leveraging the current state of play in global LNG prices to lock in favorable terms for energy supply, it is actively evaluating additional medium- and long-term LNG sourcing options to support the expansion of its generation and gas distribution operations.

With an installed generation capacity of 4,838 MWp, Torrent Power has 2,730 MW of gas-based, 1,746 MWp of renewables, and 362 MW of coal-based capacity, while projects under development entail 3,154 MWp of renewables and 3,000 MW of pumped storage.

BP has been a busy bee lately across many regions, including Azerbaijan, where the firm confirmed final investment decisions for multiple projects.

This encompasses the development of the next stage of a natural gas field in the Caspian Sea, seen as the firm’s largest gas discovery.