State-owned Coal Power Generation Company Bangladesh Limited (CPGCBL) signed a memorandum of understanding (MoU) with a Japanese firm, Mitsui Company Limited, yesterday to build a 500 – 600 MW re-gasification LNG based combined cycle power plant in Matarbari, Cox’s Bazar.
CPGCBL Secretary Md Mizanur Rahman and Mitsui General Manager (Asia Pacific) Yagi Oyada signed the MoU at CPGCB’ office in Dhaka. According to the MoU, CPGCBL and Mitsui will form a joint venture firm to build the plant.
It will be the government’s second joint venture for a power plant where imported regasified LNG will be used.
CPGCBL Managing Director Md Abul Quasem confirmed to the Dhaka Tribune: “We have signed a MoU with Mitsui to build a LNG-based combined cycle power plant in Matarbari.”
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 an 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.