Japanese-based energy firm JERA is acquiring a 49-percent stake in a new gas-fired power generation project in Bangladesh.
The project is now under development led by Reliance Power. It is JERA’s first project foray into Bangladesh.
The 750-MW natural combined cycle gas turbine plant will be at Meghnaghat, Narayanganj, located southeast of the capital city Dhaka. Under a long-term power purchase agreement with the Bangladesh Power Development Board (BPDB), the electricity generated will be sold for 22 years after commercial operation starts.
The project company, with support from sponsors Reliance Power and JERA, will negotiate the EPC contract and loan agreements for the project.
JERA has identified Bangladesh as a priority country for investment in view of the high expected growth in demand for electricity accompanying steady economic development. Through its participation in the project, JERA aims to explore further business opportunities and contribute to the country’s economic expansion and enhance its revenue basis, the company said in its release.
Reliance Power Ltd., one of the biggest electricity producers in India, has an operating portfolio of nearly 6,000 MW there, including coal, gas and renewable energy generation.
The Meghnaghat plant could use about 110 million cubic feet per day of regasified liquefied natural gas (LNG), according to previous reports. The plant construction is scheduled for completion by 2022.