Power Utility Company Signs 10-Year LNG Deal to Power 2,730 MW Gas Plants and Boost Energy Security
With a market capitalization of Rs 69,209 crore, the stock has delivered a 3-year return of 186.11 per cent, although it has declined by 9.42 per cent over the past year.
Torrent Power Ltd has entered into a long-term Sales and Purchase Agreement with BP Singapore Pte. Limited for the supply of up to 0.41 million metric tonnes per annum (MMTPA) of liquefied natural gas (LNG) from 2027 to 2036. This strategic move supports Torrent Power’s plan to operate its 2,730 MW Combined Cycle Gas-Based Power Plants more efficiently during peak demand periods and rising power consumption across India. The agreement also strengthens the energy supply for Torrent Group’s City Gas Distribution business, Torrent Gas Ltd., ensuring reliable gas availability for commercial and residential users.
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This deal is a part of Torrent Power’s broader strategy to align with the Government of India’s vision of increasing the share of natural gas in the country's energy mix to approximately 15 per cent by 2030. The company is also exploring additional LNG sourcing to cater to the growing energy demand from its gas-based plants and distribution networks, thereby enhancing portfolio diversification and ensuring supply continuity.
Torrent Power Ltd, part of the Torrent Group, is one of India’s leading integrated power utilities, with a presence in generation, transmission, and distribution. Operating in Gujarat, Maharashtra, Uttar Pradesh, and Karnataka, the company’s business spans Thermal Power Generation, Renewable Power Generation, and Transmission & Distribution. Torrent Power has a total generation capacity of 4,838 MWp and is actively investing in renewable energy with an aim to expand capacity to 10 GW by 2030. The company is also making inroads into green hydrogen and ammonia production, including plans for blending green hydrogen with natural gas and developing pilot-scale projects.
As of June 02, 2025, the share price of Torrent Power Ltd stood at Rs 1,396.45. The stock's 52-week high is Rs 1,972.70, and the 52-week low is Rs 1,235.65. With a market capitalization of Rs 69,209 crore, the stock has delivered a 3-year return of 186.11 per cent, although it has declined by 9.42 per cent over the past year. The current Price-Earnings (PE) Ratio is 22.63. Among public shareholders, Gujarat State Financial Services Ltd holds a 2.36 per cent stake.
While Torrent Power has reported margin pressures due to recent acquisitions, it continues to maintain low distribution losses and high power availability. Investors tracking long-term growth stories in the Mid-Cap energy segment may view Torrent Power's expansion into clean and green energy projects as a strategic pivot in line with evolving sector trends.
Disclaimer: The article is for informational purposes only and not investment advice.