A memorandum of understanding (MoU) has been signed in this regard between the state-owned Coal Power Generation Company Bangladesh (CPGCBL) and the Japanese firm.

The power plant will be fueled by re-gasified liquefied natural gas (LNG). It will be built at Matarbari Union in Maheshkhali Upazila.

Dhaka Tribune reported that the LNG power plant marks the second joint venture of the Bangladeshi government which will see the use of imported regasified LNG.

CPGCBL managing director Md Abul Quasem was quoted by the publication as saying: “We have signed a MoU with Mitsui to build a LNG-based combined cycle power plant in Matarbari.”

The power project will be jointly constructed and funded by CPGCBL and Mitsui on a 50/50 basis.  

According to the publication, the Bangladeshi government is inclining towards importing of LNG as it is struggling to cope up with severe gas crisis caused by the rapid depletion of existing reserves and absence of new discoveries.

The MoU signing of the LNG power plant in Cox’s Bazar District follows another MoU inked by the Bangladeshi government, earlier this week, with German manufacturer Siemens for a 3.6GW gas-fired combined cycle power plant.

As per the MoU, Siemens will form a joint venture with state-owned North-West Power Generation Company (NWPGCL) to develop the power plant in Payra in Patuakhali district.

The 3,600MW power project will be fueled by regasified LNG just like the other LNG-based power plant that is coming up in Cox’s Bazar District.

It is expected to become the biggest power station in Bangladesh behind the 2.4GW Rooppur Nuclear Power Plant which is being built in Pabna District by a Russian firm.