Japan’s energy major JERA has tucked under its belt a decade-long liquefied natural gas (LNG) supply agreement, which is said to be its first long-term LNG sale and purchase agreement (SPA) to supply LNG outside Japan.
While announcing its deal with Torrent Power , one of India’s integrated power utility companies, JERA explains that it will supply four LNG cargoes per year, approximately 270,000 tonnes per annum, on a delivered ex-ship (DES) basis from its LNG portfolio for ten years, beginning in 2027.
Ryosuke Tsugaru , Chief Low Carbon Fuel Officer at JERA, emphasized: “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 and enhance our ability to respond to different demand cycles, enabling us to continue delivering stable energy across Japan and Asia.”
The LNG procured under this agreement is expected to be strategically utilized by Torrent Power, including to operate its 2,730 MW portfolio of combined cycle gas-based power plants in India, to meet the country’s rising power demand, support peak demand periods, and balance renewables generation.
The supply of LNG will also support the growing LNG requirement of the Torrent Group’s City Gas Distribution (CGD) arm, Torrent Gas (TGL), to ensure reliable supply of gas for households, commercial and industrial consumers and compressed natural gas (CNG) vehicles.
“The partnership strategically leverages the complementary seasonal demand patterns of Japan and India. By supplying to Torrent Power during India’s high demand windows, JERA can optimize utilization of its global fleet during Japan’s lower-demand months, enhancing overall supply stability across both markets,” highlighted JERA.
The Japanese player intends to continue to build a robust LNG portfolio across the Middle East, Asia, and the United States to strengthen resilience against market volatility. The company aims to enhance cost competitiveness and expand its LNG sales footprint in the Asian markets.
JERA is also spreading its LNG wings across other regions, as demonstrated by its agreement with the government of Montenegro to explore the development of an LNG terminal and an associated gas-fired plant, paving the way for a new energy hub in the Western Balkans.