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Bangladeshi LNG-fired power
plant secures loan
PROJECTS & JAPANESE energy giant JERA and India’s Reli-
COMPANIES ance Power have secured a $642mn loan for their
planned liquefied natural gas (LNG) fired ther-
mal power plant (TPP) in Bangladesh.
JERA said on July 31 that the loan, which has
come from a group of banks led by Japan Bank
for International Cooperation (JBIC), repre- contractor, Samsung C&T, had opted to use its
sented the project’s final major contract and that advanced gas path (AGP) technology.
the pair would now focus on full-scale construc- While two GE 9F gas turbines, one GE D11
tion. JERA said it aimed to begin commercial steam turbine and three H53 generators were
operations at the 745-MW power plant in 2022. slated to be installed at the plant, GE said that
The banking consortium also includes the following the AGP contract would involve two
Asian Development Bank (ADB) and Japanese GE 9F.03 gas turbines upgrades, steam turbine
banks Mizuho Bank, Sumitomo Mitsui Banking refurbishment, control upgrades and parts sup-
and MUFG. Japan’s public sector Nippon Export ply. GE said the plant would be able to generate
and Investment Insurance will guarantee pri- enough electricity to supply more than 850,000
vate-sector loans as well as JERA’s stake in the homes when finished.
project. The upgrade is expected to boost power out-
“We are delighted to achieve financing tie-up put by up to 6.7%, heat by up to 3.3% and effi-
for this landmark project, which is the largest ciency by up to 2%. Moreover, the technology
foreign direct investment [FDI] and the largest should enhance the plant’s operational flexibil-
IPP [independent power producer] in Bangla- ity and extend its maintenance interval by up to
desh, with a consortium of banks led by JBIC. It 32,000 hours.
represents one of the largest funding tie-ups for The CEO of Reliance Bangladesh LNG &
a project in Bangladesh’s power sector,” Reliance Power, the joint venture set up to develop the TPP,
Power chairman Anil Ambani said. Ranjan Lohar, said: “The project will give tremen-
The TPP – being developed under a build, dous boost to the economic and industrial growth
own and operate (BOO) model – will be of Bangladesh and help to enhance the energy sup-
located about 40 km south-east of Dhaka in the ply with clean and reliable LNG-based power.”
Naranganj District. The plant will sell its power Bangladesh is boosting its consumption of
output under a 22-year supply contract with LNG, after soaring residential and power sector
Bangladesh Power Development Board (BPDB). demand for gas outpaced domestic production
Global engineering solutions provider GE capacity several years ago. The emergence of sup-
announced on July 30 that the project’s engi- ply shortages has led to rolling blackouts, which
neering, procurement and construction (EPC) have dragged on economic growth.
IOC takes FID on Paradip petchem project
PROJECTS & STATE-RUN Indian Oil Corp. (IOC) has production of polyester, before noting that its
COMPANIES reached a final investment decision (FID) on 357,000 tpy MEG production unit at Paradip
its planned INR138.05bn ($1.84bn) integrated should become operational towards the end of
para-xylene (PX) and purified terephthalic acid 2021.
(PTA) facility in Odisha State. IOC said Paradip’s ability to produce both
The petrochemical complex will be inte- PTA and MEG would not only benefit its
grated into the company’s Paradip refinery, upcoming 300,000 tpy textile yarn manufactur-
which started operations in 2015, and should ing project at Bhadrak, but would also boost the
come online by early 2024, IOC said on July 31. local polyester manufacturing industry.
The project will be able to produce 800,000 IOC chairman S M Vaidya said: “[T]hese
tonnes per year of PX and 1.2mn tpy of PTA, investments, along with investments in other
with the former to be used in the production of downstream projects, will boost entrepreneur-
the latter. ship not only in Odisha but in the entire Eastern
IOC highlighted that both PTA and India that would contribute to the ‘Atmanirbhar
monoethylene glycol (MEG) were used in the Bharat and ‘Make in India’ vision of our nation.”
P6 www. NEWSBASE .com Week 31 06•August•2020
