Indian Reliance Group has developed a plan to set up a 750 megawatt power plant in Meghnaghat of Narayanganj that will run on imported liquefied natural gas (LNG).
The Power Division sent a proposal to the Cabinet Division in this regard for approval by the cabinet committee at the time of purchase, said a head of the Power Division.
According to the proposal, the government will buy Reliance's power at 7.31 US cents per KW / h (TK 5.85 per KW / h).
The Indian company is seeking to set up the plant after moving some machines from its plant in southern India to Bangladesh.
Reliance proposed to the government to set up a 3,000 MW power plant in Bangladesh based on imported LNG. In June 2015, the Bangladesh Power Development Board (PDA) signed a MoU with Reliance Power Ltd in this regard.
A Power Division official said that the main plant equipment of 750 MW would be moved to India, but Reliance should submit performance certificates from equipment manufacturers.
Prime Minister (PMO) could grant Reliance permission to produce 750 MW on the condition that he would use imported LNG to generate power, the official added.
According to a Ministry of Power official, Reliance is to build a floating terminal in Moheshkhali of Cox's Bazaar to facilitate the import of 500 million cubic feet per day (MMcfd) of Middle Eastern LNG .
The outbuilding will have to discharge LNG and convert it into natural gas in Moheshkhali. The company would need a pipeline to supply gas to Meghnaghat of Moheshkhali.
State company Petrobangla will set up a Moheshkhali gas pipeline in Bakhrabad. The Gas Transmission Co Ltd (GTCL) will set up another Kutumbupur gas pipeline from Bakhrabad to Meghnaghat with its own funds to supply gas to the power plant. Reliance will pay fees to GTCL for use of the pipeline.
A head of the power division said the plant would be likely to enter production after 2019.
The Indian company will build three other power stations in Chittagong and Narayanganj to produce an additional 2,250 MW.
He estimated a cost of $ 2.35 billion for the installation of the 3,000 power stations and the LNG terminal.