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    • Oct 12, 2023
    • 4 min read

Meghnaghat 583 MW (Summit) Dual Fuel Power Plant (Unit 2)

Current Status: Construction


Meghnaghat 583 MW Dual Fuel Power Plant, also known as Summit Meghnaghat II Power Plant or Meghnaghat-II Power Station, is a Combined Cycle (CC) power plant situated in Char Ramzan Sanaullah of Meghnaghat Island under Sonargaon Upazila in Narayanganj District of Bangladesh (Location: 23.6085, 90.5963). It is sponsored by Summit Meghnaghat II Power Company Limited (SMIIPCL), a joint venture company of Summit Group and General Electric Company (GE), as a private Independent Power Producer (IPP) for 22 years. As per the latest schedule, the power plant will start commercial operation in March 2023 and retire in March 2045.


Capacity

The installed capacity of Summit Meghnaghat LNG Power Plant is 590 MW while the net capacity is 583 MW for Liquefied Natural Gas (LNG) and 541 MW for High-Speed Diesel (HSD).


Context

The Summit Meghnaghat II power plant, a 583 MW natural gas combined-cycle facility, is set to be constructed near the existing Meghnaghat power plant site on the northern banks of the Meghna River in Meghnaghat, Bangladesh. The project is being developed and operated by Summit Meghnaghat II Power Company (SMIIPCL), which is a partnership between Summit Group (80%) and General Electrics (GE) 20%. In March 2019, a 22-year power purchase agreement (PPA) was signed between SMIIPCL and the Bangladesh Power Development Board (BPDB) for the purchase of the electricity generated by the plant. With an estimated cost of $510 million or 5,588 crore Tk according to 17 September 2023, the foreign exchange rate is (1 USD equal to BDT 109.57043). This project is anticipated to become one of the largest combined-cycle power plants in Bangladesh and was originally scheduled for commissioning in March 2022. (NS Energy Business, n.d.). As per the latest schedule, the power plant will start commercial operation in March 2023. (Summit Power International, n.d.)

Since June 2015, the Summit Group has been operating the 337 MW Summit Meghnaghat I power plant on the same site. This existing facility consists of two robust GE 9E gas turbines, two heat recovery steam generator (HRSG) units provided by Hangzhou Boiler and a steam turbine manufactured by Harbin Electric Corporation. Summit currently contributes around 2 GW of electricity to the national power grid of Bangladesh, holding the title of the country's largest independent power producer (IPP). The endeavor aligns with the Government of Bangladesh's strategic objective of attaining 40 GW of installed capacity by 2030 (NS Energy Business, n.d.).

Land Acquisition

The total land area of the project is 14.28 acres, which is owned by the BPDB. This parcel of land is integrated into the Meghnaghat Power Hub and was originally acquired by the BPDB during 1997-98. The land has also been equipped with flood embankment infrastructure. (ERM India Private Limited, 2018).


Finance

The anticipated expenditure for the Summit Meghnaghat II endeavor amounts to USD 510 million or 5,588 crore Tk (According to 17 September 2023 the foreign exchange rate is 1 USD equal to BDT 109.57043). This project is envisioned to secure its funding with a debt-equity ratio of 60% debt and 40% equity. The prominent debt providers for this project are expected to include the International Finance Corporation (IFC) and Janata Bank (NS Energy Business, n.d.).


Sponsor

International Finance Corporation (IFC) and the Janata Bank are expected to be the major debt providers (NS Energy Business, n.d.).


Contractors

In August 2017, GE was granted the comprehensive engineering, procurement, and construction (EPC) contract for the project. In October 2018, GE signed a 20-year agreement for the maintenance and repair of power generation equipment at the Summit Meghnaghat II power plant. (NS Energy Business, n.d.) and (Power Technology, 2023)


Fuel Supply

The project has executed a fuel supply contract with the Bangladesh Petroleum Corporation (BPC), and a gas supply agreement has been formalized with the Titas Gas Transmission and Distribution Company (TGTDCL) (NS Energy Business, n.d.).


Power Generation

The Summit Meghnaghat LNG Power Plant boasts an installed capacity of 590 MW, with a net capacity of 583 MW for Liquefied Natural Gas (LNG) and 541 MW for High Speed Diesel (HSD). The electricity produced by the Summit Meghnaghat II facility will be transmitted to the national grid via the pre-existing 230kV lines and the existing 230/132kV substations situated at the site (NS Energy Business, n.d.).


Environment

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is mandatory for any industry (MOLJPA 1995). The polluting industries, such as power plants, have to go through an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 2017 (MOEFCC 1997). ERM India Private Limited (ERM) was contracted to conduct an environmental and social impact assessment study for the project, a 583 MW Dual Fuel (NG/RLNG and HSD) combined cycle power plant. The project plans to release treated effluent and cooled water into the Meghna River via a buried pipeline, considering impacts on traffic, biodiversity, and livelihoods. Mitigation measures are suggested to address social and environmental effects, particularly related to air quality and noise. Overall, the assessment anticipates positive socio-economic benefits with manageable short-term, localized negative environmental effects through proper design and supervision. (ERM India Private Limited 2018)


Criticism

While the project brings the promise of increased energy capacity and economic growth, several environmental concerns and criticisms need to be addressed. The Meghna River's ecosystem needs careful assessment to prevent adverse effects on aquatic organisms from treated effluent and water release. Factors like air quality and noise pollution need cumulative impact assessment. Biodiversity preservation measures need to be clearly outlined and rigorously monitored.


Transparency regarding potential effects on local community livelihoods and continuous evaluation of predicted socio-economic benefits are essential. The Summit Meghnaghat II Power Plant project faces concerns about public involvement and environmental assessment, necessitating rectification to align with community needs and regulations, community consent, and effective mitigation measures for environmental protection.


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