4 June 2018 | Shahed Siddique and Faisal Mahmud, The Daily Independent
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| Maheshkhali LNG Terminal II |
A number of large independent power producers have submitted their unsolicited proposals to the Power Division to establish LNG based power plants, a letter obtained by The Independent has revealed. These plants—18 in all—range from 460 MW to 4,800 MW and will be established at different parts of the country, covering a mix of geographical areas, the letter said. The new plants are part of a concerted effort to increase generation capacity in a country that traditionally has relied on gas-fired power.
The government has said upgrading the country’s energy infrastructure is critical to increasing security and lessening the need to import power from neighbouring countries.
Experts, meanwhile, said that there was a chance that the large companies would monopolize the LNG-based power plant sector and increase the price of electricity after a certain period.
Out of the companies, two—Unique Group and United Enterprise & Co Ltd—are already in the negotiation phase with the government for establishing the plants.
United Enterprise plans to establish the 500 MW combined cycle modular power plant at Anwara, Chittagong and Unique Group a LNG terminal and 1200 MW combined cycle power plant.
Germany-based Siemens, meanwhile, signed a memorandum of understanding (MoU) with the North-West Power Generation Company Limited (nwpgcl) to establish an LNG-based gas fired combined cycle 3600 MW plant.
The estimated cost of the project is $2.5 billion, 80 per cent of which is expected to come as a loan. For the new LNG-run plant, the government has allotted 100 acres of land next to the coal-based plant.
Bangladesh’s largest independent power producer Summit Power Ltd is in the final stage of signing a MoU with PDB to establish a 2,400 MW LNG-based power plant at Matarbari.
Summit Power International also signed, in March this year, an MoU with Japan’s Mitsubishi Corp and subsidiary Diamond Gas International to develop a $3 billion LNG-to-power project in Bangladesh.
Under the MoU, subsidiary Summit Corp, group company Summit Holdings, and the Japanese firms agreed to develop an integrated liquefied natural gas (LNG) onshore receiving terminal with regasification capacity of up to 1,500 million cubic feet per day (mmcfd) at Matarbari, Moheskhali, in the Bay of Bengal.
They also agreed to develop two 1,200 MW gas turbine combined cycle power generators, relevant high voltage transmission lines and the import of LNG.
Japan-based Mitsui & Co Ltd has signed an MoU with the Coal Power Generation Company Limited (CPGCL) to establish an LNG-based power plant in Matarbari.
US-based General Electric has placed a proposal to establish seven LNG-based plants in collaboration with different Bangladeshi entities including CPGCL, NWPGCL, Ashuganj Power Generation Company Limited (APGCL), Rupantorta Prakritik Gas Company Limited (RPGCL) and Bangladesh Power Development Board (PDB).
Their proposed plants range from 1,200 MW to 4,800 MW. The letter said PDB had already discussed with GE about the establishment of a 3,600 MW plant. Petramina has signed a deal with PDB to establish a 1,200-1,400 MW plant at Kutubdia.
The BSRM group has placed a proposal to establish a 300 MW plant at Mirsarai of Chittagong. Kindle Energy has placed a proposal to establish two 500 MW LNG-based plants at Anwara in
Chittagong and Maheshhali in Cox’s Bazaar. Sembcorp placed a proposal to establish 1,000-1,500 MW plant at Matarbari and Reliance Power Ltd has placed a proposal to establish 1,500 MW plant at Meghnaghat. Beximco has placed a proposal to establish a 460 MW plant.
Golar Power Ltd has placed a proposal for establishing 1500 MW and it is already placed in the PDB. Another proposal for establishing 400+15% MW LNG based power plant in either Meghnaghant or Narayanganj by Anlima Textile Ltd has already been evaluated by the PDB.
Experts said the country had 16,230 MW of generation capacity as of April 2018, and the country’s Power Division had said capacity had be be increased to 24,000 MW—a 52% jump—by 2021, according to its most recent Power Sector Master Plan.
Experts have said electricity demand in Bangladesh is likely to reach 30,000 MW by 2030. Senior government officials have said. Bangladesh expects to import at least 25% of its electricity from India over the next few years.
Energy Expert Dr Ijaz Hossian said the challenges ahead were many. “None of these [LNG-based power plant] have reached the Power Purchasing Agreement (PPA) stage.”
He said the infrastructure challenges for these power projects are regasification facilities, pipelines to transport the regasified LNG to power plants, the CCGT power plants, and, finally, the laying of extensive transmission lines to send the power from remote locations to the demand centres.
“For the first few projects of approximately 2,000 MW, the government will probably be able to find financing and partners but to achieve the 2030 target and beyond it will be the real challenge.”