India-based Reliance Power has completed execution of agreements associated with the INR6,500crore ($1bn) worth first phase of its 3,000MW gas-fired power project in Bangladesh.

The first phase of the company’s integrated power project features a 750MW combined cycle gas-fired power plant. Fueled by LNG, the power plant will be built near Dhaka, at Meghnaghat.

Along with the gas-fired power plant, a liquefied natural gas (LNG) terminal will be built in Kutudbia Island near Chittagong as part of the first phase.

The LNG terminal will have a capacity of 500mmscfd and an agreement has been signed by Reliance Power with Bangladesh state-owned PetroBangla for its usage.

Reliance Power says that it has already executed project agreements with the country’s electric utility Bangladesh Power Development Board (BPDB). It had also secured a power purchase agreement (PPA) and implementation agreement (IA) for the power project in April this year.

The project is the result of a memorandum of understanding (MoU) signed by Reliance Power with BPDB in June 2015. As per the MoU, Reliance Power agreed to develop a 3GW integrated combined cycle gas-based power project in a phased manner along with the construction of a 500mmscfd LNG terminal.

Reliance Power claims that its investment marks the largest foreign direct investment (FDI) in the Asian country and also the largest investment in its energy sector till date.

The company plans to move a previously procured module of equipment for its 2.25GW Samalkot combined cycle power project in the Indian state of Andhra Pradesh for the Bangladesh project’s first phase.

Reliance Power, in a statement, said: “Reliance project will give a tremendous boost to the economic and industrial growth of Bangladesh and will enhance the energy security of the country with clean, green and reliable LNG based power.”