The state-owned North-West Power Generation Co Ltd (NWPGCL) is planning to build a 750MW-850MW re-gasified LNG-based combined cycle power plant in Khulna.
For the first time, this type of power plant will be built through imported re-gasified liquefied natural gas (LNG) from India.
The project is envisaged under the power system master plan drawn by government in 2010.
The government has moved to import LNG for the country as it is reeling from an acute gas crisis due to the fast depletion of current reserves and lack of new discoveries.
Currently, the cost of electricity per unit from a gas-run plant is less than Tk2 while the cost of electricity per unit produced from a diesel or oil-run plant is Tk14 to Tk18.
“We have decided to carry-out a techno-commercial feasibility study with respect to import of re-gasified LNG from India. This study would be completed by December 2014,” NWPGCL Managing Director AM Khurshedul Alam told the Dhaka Tribune recently.
“Following the completion of feasibility study and tender process, the signing of contract for construction of the power plant is targeted for March 2016,” he added.
“Imported re-gasified LNG is to be made available at the plant site for its operation. The company [NWPGCL] has set a target for making the power plant operational preferably by mid-2018.
“We have planned to import around 125 million cubic feet per day [mmcfd] equivalent of re-gasified LNG at Bangladesh-India border through an offshore LNG terminal from India’s West Bengal by June 2018,” Khurshedul said.
“Now we are negotiating with the Indian state-owned Gas Authority of India Limited (GAIL) to import re-gasified LNG for the power plant,” he added.
This arrangement involves transportation of re-gasified LNG by the GAIL operated pipeline inside Indian territory up to Petrapol point of Bangladesh-India border, and further transportation of re-gasified LNG by a new interconnecting pipeline to be built within Bangladesh territory up to the existing gas transmission grid at Jessore, and finally further beyond up to the power plant location at Khulna.
A 10-member joint working group has already been constituted with five members from the NWPGCL and the rest from the GAIL to implement the project.
India’s H-Energy East Coast Private Ltd is promoting a 4 million tonnes per annum floating LNG import terminal in offshore Digha region of West Bengal, which is expected to be operational by the end of 2015 and is intended to supply natural gas to eastern states of West Bengal, Jharkhand and Bihar and some northern states through the proposed Jagdhishpur-Haldia pipeline of the GAIL.
As the JHPL is designated for bi-directional flow, re-gasified LNG from the proposed Floating Storage and Re-gasification Unit of H-Energy at offshore of Digha region can be injected at Haldia and delivered to Bangladesh at Petrapol border, subject to execution of suitable firm agreement between the GAIL and H-Energy and necessary government clearances.
A total 118km long stretch of pipelines will be required to be built to run the LNG from India into Bangladesh’s national gas grid, including a 72km pipeline from Kolkata to Benapole and a 46km pipeline from Benapole to Jessore.
Another state owned company, Gas Transmission Company Ltd (GTCL) would build the gas-transmission pipeline inside Bangladesh to import LNG.
The Manila-based Asian Development Bank (ADB) might finance the project.