The government has set its sights on the southwestern region, aiming to transform it into a powerhouse of energy and industry. With a focus on tackling the power crisis and driving massive industrialization, the ambitious plan promises to bring significant development and opportunities to the area.
The power division has drawn up a plan to establish a 3,600-megawatt LNG-based power plant in Payra.
To facilitate this, a proposed LNG terminal in Payra, essential for the power plant, is to be constructed by Petrobangla, a decision prompted by the government's policy of non-interference between different energy-related departments.
Petrobangla recently entered into a term sheet agreement with Accelerate Energy on November 8 for the construction of the LNG terminal.
However, constructing the LNG terminal in Payra presents challenges due to the insufficient draft at Payra Port, hindering the anchoring of LNG ships.
Despite dredging efforts, the draft remains at 8 to 10 metres, falling short of the required 12 to 14 metres.
Consequently, the proposed LNG terminal will be constructed at sea, approximately 30km from the land, with a model successfully implemented in Maheshkhali, situated 6km offshore.
Despite the technical challenges, an official of Petrobangla said that LNG terminals are often constructed even 50-60km away. “Building such a line is not a very difficult task.”
Petrebangla sources say that a gas pipeline will be constructed from Payra to Khulna. The pipeline will be connected to the national grid, creating an alternative gas import route beyond Maheshkhali.
Industrial growth
The government’s vision extends beyond mere energy generation.
The Payra project paves the way for an Export Processing Zone (EPZ) in close proximity. This, coupled with an existing EPZ in Mongla, aims to attract much-needed industrial growth to the region.
The construction of the terminal at Payara will create new industries in the south-western region.
Presently, major heavy industries, such as the steel industry, are concentrated in the Chittagong region due to the absence of gas in the southwest.
However, the successful implementation of the Payara LNG terminal holds the potential to supply gas for electricity generation and support the establishment of heavy industrial plants in the region.
The geographical diversification will not only boost local supply but also reduce transportation costs, benefiting consumers nationwide.
Power Cell Director General Mohammad Hossain said: “We have prepared an integrated master plan for electricity and fuel to keep the country's electricity production normal.”
The master plan was developed by the Japan International Cooperation Agency (Jica) under the supervision of Power Cell.
He said Prime Minister Sheikh Hasina has already endorsed this comprehensive plan, aimed at ensuring stable electricity production nationwide.
“The construction of LNG terminals in some places will be convenient, and it will be possible to ensure the energy supply of the whole country. Based on that, an LNG terminal is also being built in Payra. This will create massive industrialization and employment in that region,” Mohammad Hossain added.