As per the MoU, Siemens will build the LNG-based power plant, which is estimated to cost $2.8bn, featuring three units. Each of the unit will have power generation capacity of 1,200MW.

A LNG terminal is also planned to be built at the project site to ensure natural gas availability to produce electricity.

NWPGCL of Bangladesh managing director Khurshidul Alam was quoted by Reuters as saying: “This will be the largest single power project and it will also be the largest single investment from any European country.”

The power plant’s first unit is planned to be commissioned in June 2020, followed by the second in December 2020 while the third in December 2021, energy bangla reported.

Bangladesh State Minister for Power, Energy and Mineral Resources Nasrul Hamid said: “To be a middle income country by 2021 and a developed economy by 2041 the national demand of electricity will be 24,000MW by 2021 and 60,000MW by 2041.

According to energy officials, Bangladesh holds only 12.68 trillion cubic feet of gas, which would be exhausted by 2030 if new gas fields are not discovered.

Hamid added: “There is no additional gas in the country, and oil is too expensive with volatile price fluctuation, moreover LNG based power generation will be cheaper and it will also ensure clean energy.”

NWPGCL is currently developing a 1320MW coal-fired power plant at Payra region and is almost 26% complete, reported

Image: Bangladesh intends to boost power generation capacity. Photo: courtesy of Jearayuth/