The government is planning to set up a 500MW-600MW regasified LNG-based combined cycle power plant in Matarbari of Cox’s Bazar.
The power plant will be developed by a joint venture company – Japanese MITSUI and Company Limited, and the Coal Power Generation Company Bangladesh Limited (CPGCBL).
It will be the government's second joint venture power plant where imported regasified liquefied natural gas (LNG) will be used.
“We have received a proposal from MITSUI to build a LNG-based combined cycle power plant in Matarbari. We have already sent an opinion to the Power Division,” CPGCBL Managing Director Md Abul Quasem told the Dhaka Tribune on Monday.
He hoped the Power Division would give a positive response soon after verifying the proposal.
Quasem said Petrobangla was gearing up for the import and distribution of LNG as fuel to meet the country’s power demand.
Deals and memoranda of understanding (MoU) have already been inked for setting up six LNG terminals and expressions of interest (EoI) have been called for establishing more terminals.
Quasem said they hoped Petrobangla would supply LNG to the proposed power plant at the government rate. Imported re-gasified LNG is to be made available at the plant site for its operation.
CPGCBL and MITSUI will jointly build and finance the plant. The project will be implemented on a 50:50 equity basis.
The government has moved to import LNG as it is reeling from acute gas crisis due to the fast depletion of current reserves and lack of new discoveries.
Currently, one unit of electricity from a gas-run plant costs less than Tk2 but the same unit produced by a diesel or oil-run plant costs Tk14 to Tk18.
The CPGCBL and Singapore’s Sembcorp are building a 700MW ultra super-critical power plant in Matarbari. The CPGCBL will also construct a 1,200MW ultra super-critical plant with JICA-funding in Matarbari.