Govt may allow 660MW LNG power plant under unsolicited deal

Shamim Jahangir

18 June, 2021 12:00 AM printer

Govt may allow 660MW LNG power plant under unsolicited deal

A Bangladesh-Malaysia joint venture company is likely to win the contract for a 660MW LNG-based combined cycle power plant at Jamaldi in Meghnaghat under an unsolicited deal, sources at Power Division said. 

The plant will be operated under a 22-year unsolicited deal. This will be the fourth LNG-based power plant to be allowed by the government.

The Consortium of Edra Power Holdings Sdn Bhd and Winnievision Power Ltd (EPH-WPL Consortium) proposed to implement the plant in 2019.

Winnievision Power Ltd is owned by former Army Chief General Iqbal Karim Bhuiyan, sources said.

Bangladesh Power Development Board (BPDB) will purchase per kilowatt of electricity from the proposed plant at Tk 5.4377 (USC$6.7972).

The tariff will be comparatively lower than other four LNG power plants approved by the Power Division.

According to the Division, a series of oil-based plants having a combined capacity of 1960MW will retire this year.

Besides, another 5740MW of electricity will also become inoperative due to the closure of old plants, said a draft proposal of the Division.

The EPH-WPL Consortium will bear all the cost of power transmission line, sub-station and gas transmission line etc under Independent Power Producer (IPP) mode for implementing the project.

The Petrobangla said it would be able to supply R-LNG/Gas to feed the plant if it’s available. On June 15, 2021, the Ministry of Power, Energy and Mineral Resources decided to form a committee to ensure supply of gas to feed the power plants for next three years as the existing gas-fired plants face forced shut-down due to unavailability of natural gas.

Earlier, the government has allowed three LNG-fired plants to Indian Reliance Power Ltd, the Consortium of Summit Corporation Ltd and GE and the Consortium of Unique Hotel and Resorts Ltd, Guayama PR Holdings BV and Strategic Finance Ltd.