Page 7 - AsiaElec Week 35

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Bangladesh seals power deal with Reliance Power, JERA
BANGLADESH
BANGLADESH is to buy 718MW over 22 years from 2022 from a privately owned gas-fired power plant to be built by India’s Reliance Power and Japan’s JERA.
Reliance said that it planned to invest $1bn to build a 750-MW plant at Meghnaghat, Narayan- ganj, 20km south-east from Dhaka.
e combined-cycle power plant will burn both natural gas and regasi ed LNG.
gas- red combined cycle capacity in a number of phases in the country.
Bangladesh’s installed power capacity is more than 20,000MW and the country aims to provide electricity to all of its more than 160 million peo- ple by 2020.
“This joint venture project will give a tre- mendous boost to the economic and industrial growth of Bangladesh and will enhance the energy security of the country with clean, green and reliable LNG-based power,” said Reliance chairman Anil Ambani.
Bangladesh Power Development Board
(BPDB) signed a power purchase agreement
(PPA) and land lease agreement (LLA) with Reli-
ancefor718MW. eprojectwillrepresentthelargestforeign
Reliance and JERA have also signed a gas sup- ply agreement (GSA) with Titas Gas, a subsidiary of Petrobangla, for the supply of gas to the power project, and an implementation agreement with the Bangladeshi Ministry of Power, Energy and Mineral Resources. Reliance Power will own a 51% stake in the holding company running the project, while JERA will take 49%.
In 2015, Reliance Power signed a memoran- dum of understanding (MoU) with the Bangla- deshigovernmenttodevelopupto3,000MWof
direct investment (FDI) in the power sector in Bangladesh.
At the signing ceremony, Riva Ganguly Das, India’s high commissioner in Bangladesh, said that Bangladesh’s economy had grown rapidly over the last ve years, especially in the power and energy sectors.
“We are committed to help Bangladesh in the journey of becoming a middle-income country by 2021 and we are exploring all paths to develop thestrategyofjointco-operation,”Dassaid.™
BCPL to invest in Indian FSRU
INDIA
INDIA’S Bharat Petroleum Corporation Ltd (BPCL) has unveiled plans to build an o shore LNG import terminal at Krishnapatnam in Andhra Pradesh. BPCL’s chairman, D Rajkumar, said on August 26 that his company would invest INR15-17bn ($210-238mn) in building the oating storage and regasi cation unit (FSRU).
According to Rajkumar, the FSRU will ini- tially have a capacity of 1mn tonnes per year, which can be scaled up to 3-5mn tpy further down the line. e company anticipates com- missioning the facility by 2022.
BPCL will hold a 74% stake in the project, with Petronet LNG owning the remaining 26% interest, Rajkumar said.
e move appears to suggest that BPCL – India’s second-largest state-owned re ning and fuel marketing rm – anticipates the use of nat- ural gas as cleaner-burning fuels becoming more popular. Prior to announcing its LNG invest- ment, BPCL has also started participating in city gas distribution (CGD).
Rajkumar said BPCL was transferring its gas business to a new subsidiary – Bharat Gas Resources Ltd (BGRL). e company already
has CGD licences for 37 geographical areas, including through joint ventures with other players.
BGRL has also entered into a long-term sales and purchase agreement (SPA) to buy 1mn tpy of LNG from Mozambique over a period of 15 years, Rajkumar noted. e gas will come from the Anadarko Petroleum-led Mozambique LNG project, on which a nal investment decision (FID) was recently taken. e project is antici- pated to enter service in 2024. A BPCL unit owns a 10% stake in Mozambique LNG.
BPCL’s FSRU plan comes as other companies also move forward with the construction of LNG import terminals – though some proposals have also been scrapped. Adani Group is building a 5mn tpy LNG import facility at Dhamra in Odi- sha. Meanwhile, Petronet had previously signed a rm and binding term sheet for developing an onshore LNG terminal at Gangavaram Port in Andhra Pradesh alongside Gangavaram Port Ltd (GPL), but subsequently abandoned the plan. State-owned GAIL (India) had also been intend- ing to develop a facility at Paradip, in Odisha, but also scrapped the proposal.™
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