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Anwara 1400 MW (Pertamina) LNG Power Plant

Current Status: Permitting

Source: Representational Photo : (ObserverBD)


Anwara 1400 MW LNG Power Plant, also known as PERTAMINA Anwara LNG Power Plant, is a proposed Combined Cycle Gas Turbine (CCGT) 3 with a capacity of 1,400 MW to be situated in MajherChar under Anwara Upazila in Chattogram District of Bangladesh (Location: 22.2333, 91.8657). It is sponsored by PERTAMINA an Indonesian state energy company, as an Independent Power Producer (IPP). The project construction is likely to commence in 2025 and is expected to enter into commercial operation in 2026.


Capacity

The installed (gross) capacity of this power plant is 1400 MW and the derated (net) capacity is 1200 MW (Power Technology, 2023).


Context

In 15 September 2017, Indonesia and Bangladesh entered into a memorandum of understanding with the aim of initiating discussions regarding the importation of liquefied natural gas (LNG), along with the development of infrastructure like a power plant and a floating storage and regasification unit (Reuters, 2019; Antara, 2018).

Indonesia’s state energy company PT PERTAMINA had plans to develop an integrated initiative in Bangladesh encompassing a 1,400 MW Independent Power Producer (IPP) Combined Cycle Gas Turbine (CCGT) Power Plant, which would be linked to an LNG reception setup involving a Floating Storage and Regasification Unit (FSRU), mooring and offloading infrastructure, as well as both underwater and onshore gas pipelines (Antara, 2018).

The Bangladesh Power Development Board (BPDB) was slated to be the recipient of the power generated by this comprehensive facility. The project, projected to cost $2 billion, was anticipated to conclude within three years from financial closure (Antara, 2018). The plant is expected to be started in 2023 (GEM, 2023) but another report said that the project construction is scheduled to start in 2025, followed by its commencement of commercial operation by 2026 (Power) .


One of the commercial agreements inked on the third day of Prime Minister Sheikh Hasina's official visit to Japan was the construction of a high-efficiency 700MW combined cycle gas-fired power plant at Anwara, Chattogram. The facility, which will enable future hydrogen co-firing and make use of Kansai's operating and maintenance capabilities, will be built and operated by KEPCO, AKH PP Project, and Itochu. The plant's design allows for future hydrogen co-firing and will benefit from Kansai's operational and maintenance expertise (TBS, 2023).


Furthermore, Marubeni Corporation and Asian Entech Power Corporation Limited have signed a Memorandum of Understanding during a trading and investment summit, underlining their collaboration for sustainable energy projects in Bangladesh (Marubeni, 2023). The company has a 50% equity stake with Pertamina in this powerplant (Fossil Free Chattogram, 2022).


Land acquisition

No information has been found yet on this as the powerplant is in the announcement phase.


Finance

The project is projected to cost $2 billion or BDT 21914.08 crore (on 17 September 2023) by PT Pertamina (Antara, 2018).


Sponsors

Indonesia’s state energy company PT Pertamina is the investor in this power plant. Marubeni has a 50% equity stake in this project (Fossil Free Chattogram, 2022).


Contractors

The power plant will be constructed and operated by KEPCO, AKH PP Project, and Itochu. The plant's design allows for future hydrogen co-firing and will benefit from Kansai's operational and maintenance expertise (TBS, 2023)


Fuel Supply

Pertamina has put forward plans for the gas power plant that could consume around 150-200 million standard cubic feet per day (mmscfd) of gas, with Pertamina expected to be the gas supplier, as stated by Setiawan in remarks to Reuters (Reuters, 2019).


Power Generation

It is expected to be started in 2026 with a 1400 MW installed capacity.


Environment

Liquefied Natural Gas (LNG) is a fossil fuel consisting primarily of methane, although it may contain other hydrocarbons as well. When used for power generation, it releases several harmful pollutants into the air, including carbon dioxide (CO2), nitrogen oxides (NOx), carbon monoxide (CO), volatile organic compounds (VOCs), and particulate matter (PM). These emissions can have adverse effects on human health and contribute to air pollution. NOx can lead to respiratory problems, CO affects oxygen circulation in the body, VOCs are associated with various health issues, and ozone can form as a byproduct. Particulate matter, especially PM2.5, has been linked to lung cancer and heart disease. Additionally, methane leaks during the production of LNG, which is a potent greenhouse gas, further exacerbating environmental concerns. Under Section 12 of the 1995 Bangladesh Environment Protection Act, industrial facilities, including those that contribute to pollution such as power plants, are required to undergo both an Initial Environmental Examination (IEE) and an Environmental Impact Assessment (EIA) as specified in the 2017 Environmental Conservation Rules (MOLJPA 1995; MOEFCC 1997). Surprisingly, there has not been a single occurrence of either an IEE or EIA report being carried out for the power plant up to this point. So as it is a fossil fuel-based (LNG) powerplant, the carbon emission has to be taken into consideration and carbon tax should be taken regarding this. It will be better to move from LNG to renewable energy very soon.


References

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