Saudi Firm to Set Up Power Plant in Bangladesh: Press
Saudi Arabian ACWA Power has signed a memorandum of understanding with state-owned Bangladesh Power Development Board (BPDB) to set up a gas-based power plant in the south Asian country, local media reported October 17.
ACWA will build a 3.6 GW gas-based power plant and an LNG terminal to facilitate fuel supply to the plant. As per the MoU, the Saudi company will also set up a 2 MW solar power plant, United News of Bangladesh reported. These projects will entail a total investment of $3bn.
With electricity demand rising, Bangladesh's power sector is attracting a number of foreign investors. Earlier this month, Japan’s agreed to acquire a 22% in Bangladesh’s power company Summit Power International for $330mn. In September, Jera entered into an agreement to acquire a 49% interest in a proposed gas-fired thermal power generation project being developed by India’s Reliance Power in Bangladesh.
While gas-based generation accounts for roughly 60% of total generation, domestic natural gas production is starting to decline. Bangladesh, therefore, is promoting LNG imports as part of its national energy policy.