Energy Bangla

Indian Reliance Power Limited has proposed two separate tariff structures between Tk 7.99 and Tk 8.22 per unit for implementing LNG-based mega power project having capacity to generate 3000MW of electricity in three phases at Meghnaghat, Chittagong and Maheskhali.
Last week, Reliance vice president and business head (Gas Projects) Sameer Kumar Gupta made the proposal considering LNG tariff in the international market.
Reliance, a subsidiary of large Indian conglomerate owned by the Ambanis, made the proposal for implementing the huge mega project in the country’s history after signing a Memorandum of Understanding (MoU) on June, 2015.
Reliance has sought per unit at Tk 7.9946 including Tk 3.2005 as capacity price and Tk 4.7941 as energy prices for phase-1 for 750MW power plant at Meghnaghat.
Besides, it also sought Tk 8.2198 per unit, including Tk 3.4445 for capacity payment and Tk 4.7753 as energy prices.
The company also sought to allow them for setting up FSRU or land based LNG terminal to feed the mega power project.
In 2014, a consortium of Meika Power Limited (MPC)-Bangla Power proposed LNG based plant at per unit of electricity at Tk 12.44 or 16.6961 cents, subject to remaining LNG rate at $16.65 per mmbtu or mmcfd.
Power sector experts said, Reliance proposed power tariff is lower than MPC as the LNG price has come down in the international market last year.
The Indian company has sought 40 acres of land at Meghnaghat to implement the 750MW phase-1 Meghnaghat project.
To implement two units of Chittagong Power Project for 1500MW in phase-2, the company hopes Bangladesh Power Development Board (BPDB) shall provide 100 acres of land.
“In case BPDB is not able to provide land at Chittagong, Reliance shall buy land and build the power project at this location” Sameer Kumar Gupta informed the BPDB.
Besides, the company has sought 60 acres of land at Moheskhali to implement phase-3 project having capacity to generate 750MW of electricity.
“We may use an existing floating storage and re-gasification unit (FSRU) for the project initially after commercial operation date (COD) of the phase-1 of the project in combined cycle mode, to be replaced by a new built FSRU/land based LNG terminal at a later stage,” the company informed.
Power division insiders said, if the BPDB allows their proposal, then the government plan to feed gas for existing energy cry plants would be shattered.
Reliance also sought interest to implement each of 750MW plants in 30 months.
The Indian company also said they can implement the power evacuation plan initiated by Power Grid Company of Bangladesh.
For the capacity of 750MW Meghnaghat plant, 400kv double circuit lines will be required for the evacuation of power, it said.
Earlier, RPL has sought approval for carrying out a feasibility study on the site of phase-1 of 750MW LNG-fired power project at Meghnaghat in Narayanganj.
BPDB earlier approved the phase-1 of LNG-fired power project at BPDB’s own land at Meghnaghat, the letter reads.
The Indian company runs a 4000MW coal-fired power project in Madhya Pradesh and another 500MW coal-fired power plant in Maharashtra.  But the company has no experience in setting up LNG-fired power project.
The company also sought to grant all requisite approvals, licenses and finalise agreements within three months to ensure prompt project execution.
Talking with the Reliance tariff proposal, an official of BPDB said they are now evaluating it. After complete evaluation, the BPDB would invite the company again for tariff negotiation.