Key TPW has not tied-up new gas supplies for its UnoSugen PPA (effective from 1 Jul19). Instead, the company is (a) making use of gas tied up for Sugen (@USD6.5/mmbtu till Dec20) and (b) buying from spot, as required. While the Unosugen PPA has a ceiling on the cost of supply (INR5.6/kWh), current spot contract prices provide significant cushion (Exhibit 2). TPW believes that the natural gas market would remain oversupplied, and thus it would increase sourcing from spot contracts. Longer-term contracts (generally up to 1.5 years) could be entered, but pricing is done with reference to Brent (slope of ~10-11%) and resulting in higher cost. TPW has also contracted storage-cum-regasification capacity of 1mtpa at Petronet LNGs Dahej terminal for its imports. We note there is capacity in place to increase offtake, if required. Of the 17.5mtpa capacity at the Dahej terminal, only ~15.8 mtpa is contracted.