The Reliance Power Company Ltd (RPL), a subsidiary of Indian conglomerate owned by the Ambanis, is likely to get the final nod from the government to produce 3,000 MW of electricity in three phases at Meghnaghat, Chittagong and Maheshkhali.
"As per conditions set by the Power Division, the company will lay a separate dedicated pipeline (Maheshkhali to Meghnaghat) to transmit gas from their proposed floating storage and re-gasification unit (FSRU) at Maheshkhali," a senior official of Power Division told the daily Observer on Tuesday.
In October 2014, RPL submitted a proposal to the Power Division seeking approval for implementing a mega power plant project having a capacity to generate 3,000 MW of electricity but the Power Division had placed a set of queries to the company.
The RPL also sought land, gas and power transmission-evacuation facilities, but different government agencies asked the RPL to modify the proposal.
"A technical committee led by Additional Secretary of the Power Division Dr KaiKus was formed in March 2015, however, the committee submitted its recommendations to allow the company to implement the plan in December 2015," a senior official told this correspondent on Monday.
The committee submitted an 18-page recommendation where it set some conditions including installation of dedicated gas pipeline, installation of 150-200 mmcf gas (capacity) FSRU, no assurance of land for the plant and power evacuation system etc.
"The important part of this proposal was the tariff. The RPL has proposed two separate tariff structures between Tk 7.99 and Tk 8.22 per unit for implementing LNG-based mega power plant project in three phases at Meghnaghat, Chittagong and Maheshkhali which is lower than Meika Power Ltd as the LNG price has come down in the international market last year," the official added.
In 2014, MPC-Bangla Power proposed LNG-based plant at per unit of electricity at Tk 12.44 or 16.6961 cents, subject to LNG rate remaining at $16.65 per mmbtu or mmcfd, according to the official.
Power sector experts say to meeting the growing demand of power and energy, the government plans to go for energy mix as most of the power plants are largely dependent on the fast depleting domestic gas reserves.
"LNG is the more lucrative energy source as the country is paying Tk 16 per unit of electricity generated from liquid (diesel/furnace oil) fuel plus 9 per cent handling charge to the independent power producers," another Power Division official said.
Reliance proposed power tariff is lower than MPC, 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 750 MW power plant at Meghnaghat.
In a separate proposal it also sought Tk 8.2198 per unit, including Tk 3.4445 for capacity payment and Tk 4.7753 as energy prices, he added.
The company also sought to allow them to set up FSRU or land based LNG terminal to feed the mega power project.
Reliance made the proposal for implementing the huge project in the country's history after signing a Memorandum of Understanding (MoU) on June in 2015.
According to the proposal RPL has sought 40 acres of land at Meghnaghat to implement the 750 MW phase-1 Meghnaghat project.
To implement two units of Chittagong Power Project for 1,500 MW in phase-2, the company needs 100 acres of land.
"In case BPDB is not able to provide land at Chittagong, Reliance shall buy land and build the power plant at this location" the technical committee recommended.