BP plc’s BP Singapore-based subsidiary, BP Singapore, has inked a long-term sales and purchase agreement with India’s Torrent Power to supply up to 0.41 million metric tons per annum (mtpa) of liquefied natural gas (LNG) from 2027 through 2036. The deal is aimed at powering Torrent’s 2,730 MW combined cycle gas-based plants and supporting its expanding city gas distribution operations.
BP-Torrent Pact Supports India’s Natural Gas Push
The agreement aligns with India’s broader energy strategy to raise the share of natural gas in its energy mix to 15% (by the end of this decade) from the current level of around 6%. The gas-based plants, critical in addressing peak demand and integrating variable renewable energy, will be instrumental in balancing India’s evolving grid.
The LNG will not only support Torrent’s generation capacity but also fuel the growth of Torrent Gas’ distribution network, which is being ramped up in response to increasing demand for cleaner fuel alternatives.
Torrent Power Eyes Broader LNG Portfolio
While the current SPA marks a major step, Torrent is not stopping there. The company is actively evaluating additional medium and long-term LNG sourcing options to support the rapid expansion of both its generation and distribution infrastructure.
Torrent Power, part of the Torrent Group, currently boasts an installed capacity of 4,838 MWp, with 2,730 MW gas-based, 1,746 MWp renewables and 362 MW coal-fired assets. It also has an aggressive pipeline of projects under development, including 3,154 MWp of renewables and 3,000 MW of pumped storage capacity.
BP Builds Momentum Globally
The latest India deal adds to BP’s recent momentum across global energy markets. The firm recently greenlit major investment projects in Azerbaijan, including the development of the next phase of a giant gas field in the Caspian Sea, touted as its largest gas find to date.
This multi-year LNG offtake agreement with Torrent Power highlights BP’s continued focus on securing long-term commercial partnerships in key growth markets while supporting global energy transition goals.
BP’s Zacks Rank & Key Picks
BP currently carries a Zack Rank #5 (Strong Sell).
Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. SUBCY, Energy Transfer LP ET and RPC Inc. RES. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Energy Transfer and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.
Energy Transfer is poised to benefit from long-term fee-based commitments. It is also focused on expanding operations through organic and inorganic initiatives. The firm is looking for solutions to meet growing energy demands from additional demand centers through its pipeline network. Energy Transfer’s systematic investments should boost its total fractionation capacity at Mont Belvieu and raise its top line.
The Zacks Consensus Estimate for ET’s 2025 EPS is pegged at $1.44. The company has a Value Score of A.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities.
The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A.
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BP p.l.c. (BP): Free Stock Analysis Report Energy Transfer LP (ET): Free Stock Analysis Report RPC, Inc. (RES): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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