Torrent Power Secures LNG for Summer Peak Demand

Torrent Power has contracted three Liquefied Natural Gas (LNG) cargoes to ensure sufficient fuel for its gas-based power plants during the peak summer demand period of FY27. The company has already received two cargoes and expects the third in June. This initiative is crucial for meeting electricity demand across its licensed distribution areas in Gujarat, Maharashtra, and other territories. Any surplus generation capacity will be optimized for potential merchant power sales.

Despite global geopolitical tensions and concerns regarding key shipping routes like the Strait of Hormuz, Torrent Power confirms no disruption in LNG availability, with ample gas present in the market, although prices have increased. The company retains flexibility to procure additional LNG through spot purchases or short-term contracts if demand continues to be high throughout FY27. Currently, the sourced cargoes are not routed through the Strait of Hormuz.

Torrent Power's gas-based generation capacity, which accounts for approximately 54% of its total installed capacity, includes significant plants like the DGEN mega power plant and SUGEN plant. The company highlighted that domestic gas availability for the power sector is currently constrained. This is due to Indian Oil Corporation invoking force majeure and government redirection of ONGC and Reliance's domestic gas supplies towards city gas distribution and fertilizer sectors, making them unavailable for power generation.