Bangladesh inks deal for its largest LNG-based power plant

The 3,600MW power plant will cost around US$3b to build.

Germany's Siemens AG and Bangladesh's state-run North-West Power Generation Company Ltd (NWPGCL) inked a joint development agreement to develop a 3,600MW power plant at Payra, southern Bangladesh that will run on regasified liquefied natural gas (LNG).

S&P Global Platts, citing NWPGCL managing director Khurshedul Alam, said the plant will be the country’s largest and will cost around US$3b to build.

The project will adopt an integrated approach to LNG sourcing, procurement, transportation, re-gasification and delivery to plant, electricity generation and supply to the national grid, he said.

NWPGCL has already bought 100 acres of land for the power plant. It will be adjacent to the 1,320MW Payra thermal power plant that is currently under construction.

The first 1,200MW phase of the gas-fired power plant is expected to be commissioned by December 2021 and the second 2,400 MW phase by December 2022. Siemens and NWPGCL previously inked a memorandum of understanding for the project on 5 November 2017.