Torrent Power shares rise as firm signs LNG supply deal with BP

Torrent Power shares rise as firm signs LNG supply deal with BP

Shares of Torrent Power rose on June 3 a day after the firm announced LNG supply pact with BP Singapore to fuel power plants and meet peak demand.

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 utilised 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," said the firm in a stock exchange filing.

"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," added the company.

At 1:35 pm on June 3, Torrent Power shares were trading 1.2% higher at Rs 1,413 apiece. The 52-week low of the stock is Rs 1,207 and 52-week high is Rs 2,037. Its market capitalisation is Rs 71,000 crore.