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Bangladesh to award LNG terminal project to Reliance, says ministry
Bangladesh is set to announce the selection of India’s Reliance Power Ltd. to build a 500,000 Mcf/d a floating storage and regasification unit and a 750 MW combined cycle power plant during Prime Minister Sheikh Hasina’s visit to India in mid-December, officials said Wednesday. The Ministry of Power, Energy and Mineral Resources and state-run Bangladesh Power Development Board expect a draft power purchase agreement, implementation agreement and land lease agreement to be signed during the visit, MPEMR Additional Secretary Md Mahbub Ul Alam told S&P Global Platts Wednesday.
“We are now working to finalize the draft deals,” BPDB Chairman Khaled Mahmood said. The projects are expected to be awarded under the Speedy Supply of Power and Energy (Special Provisions) Act 2010, which does not require a tender process. The FSRU will be built at Maheshkhali Island and the LNG-based power plant at Meghnaghat; the power plant on a build, own and operate basis for around 22 years with a 15-year tax holiday.
Bangladesh is expecting to start imports of LNG either by late 2017 or early 2018 to cope with the mounting domestic demand for natural gas. The country last year created an Energy Security Fund to finance the import of LNG and build terminals, Platts reported earlier. Excelerate Energy has started work on building Bangladesh’s first LNG terminal — a floating storage and regasification unit — at Moheshkhali island, Platts reported in May. Leighton Vander Esch Womens Jersey
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