Reliance Completes Bangladesh Terminal Deal

India’s Reliance Power has completed execution of first phase of its $1bn gas fired power plant and LNG terminal project in Bangladesh, it said November 30.

It entails a 750-MW combined-cycle power project at Meghnaghat, near Bangladesh's capital Dhaka and 500mn ft³/d (5.17bn m³/yr) LNG terminal at Kutubdia Island near Chittagong.

Phase one will have an investment outlay of $1bn financed under consideration of Asian Development Bank (ADB) and a consortium of lenders. The power project will run primarily on gas. It will be the largest foreign direct investment in Bangladesh and the largest investment in Bangladesh’s energy sector, Reliance Power said. 

The terminal use agreement for the LNG terminal project was finalised with Petrobangla, a government of Bangladesh entity November 30. The project agreements for power project were earlier executed with Bangladesh Power Development Board (BPDB).

The company said that it will relocate one module of equipment procured for its 2.25-GW CCGT power project at Samalkot in Andhra Pradesh, India for the first phase of the Bangladesh project.

Reliance Power had signed an MoU in June 2015 with the BPDB to set up a 3-GW, integrated CCGT and a 500mn ft³/d LNG terminal, when India's prime minister Narendra Modi visited Dhaka.