Reliance Power secures deal for first phase of Bangladesh power project
India Bangladesh power project : Anil Ambani’s Reliance Power has wrapped up agreements related to the first phase of its 3GW LNG-fired power project in Bangladesh, which would cost around Rs 6,500 crore ($1 billion).
As part of the first phase of the Bangladesh power project, Reliance Power will build a combined cycle gas-fired power plant that will be fueled by LNG and will have a power generation capacity of 750MW. It will be constructed at Meghnaghat, near Dhaka.
Reliance Power will also build an LNG terminal as part of the $1 billion first phase.
The new Bangladesh LNG terminal, which will be built near Chittagong in Kutudbia Island, will be capable of storing up to 500 million standard cubic feet per day. Reliance Power has made a pact with PetroBangla, Bangladeshi national oil company for using the capacity of the LNG terminal.
The first phase of the Bangladesh power project is expected to be commissioned in 24 months’ time.
Reliance Power had previously completed project agreements with power utility Bangladesh Power Development Board (BPDB).
The Anil Ambani-owned company had also inked a power purchase agreement (PPA) and implementation agreement (IA) for the Bangladesh power project in April 2017.
As part of a MoU signed between Reliance Power and BPDB, the Indian company will execute the 3GW Bangladesh power station in various phases along with the LNG terminal.
The investment from Reliance Power is touted to be the largest foreign direct investment in Bangladesh apart from being the largest investment in the country’s energy industry.
The Indian energy company has revealed its intentions to transport a module of equipment for the Bangladesh power project, which was previously procured for its 2.25GW Samalkot power project in Andhra Pradesh state in India.
For more energy industry news and updates on the India Bangladesh power project, keep following Business-News-Today.com.