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    • Oct 1, 2023
    • 6 min read

Meghnaghat 718 MW (Reliance) LNG Power Plant

Updated: Oct 10, 2023

Current Status: Construction

(Source: The Asian Age)


The Reliance Meghnaghat Combined Cycle Power Plant, located in Meghnaghat, Narayanganj, boasts a substantial capacity of 718-750 MW within the surrounding area of the 35-acre government land allocated by BPDB (Location: 23°36’29” N & 90°35’39” E). It efficiently utilizes natural gas and re-gasified liquid natural gas (RLNG) as fuel sources. Reliance Power (51%), in collaboration with JERA (49%), is engaged in the development of a combined-cycle power plant using liquefied natural gas (LNG) in Bangladesh. With a 22-year power purchase agreement (PPA), it demonstrates a commitment to sustainable energy.


Capacity

The installed (gross) capacity of this power plant is 750 MW and the derated (net) capacity is 718 MW.


Context

Emerging from a memorandum of understanding inked in 2015 between India and Bangladesh, the project aims to establish a 3,000 MW gas-based combined cycle power venture in stages within Bangladesh. In the initial phase, Reliance Power intends to transfer a module of equipment from its Samalkot combined cycle power initiative in Andhra Pradesh to the Bangladeshi project. The Samalkot unit had become inoperative due to a gas shortage (GEM, 2023). Reliance Power, in collaboration with JERA, is engaged in the development of a combined-cycle power plant using liquefied natural gas (LNG) in Bangladesh. This initiative stands as India's most substantial foreign direct investment in the Bangladeshi power sector and marks the initial phase of a planned 3,000MW gas-based combined-cycle power project.


Anticipated to deliver a net output of 718 MW, the plant will generate enough electricity to cater to the needs of 850,000 households in Bangladesh. The project is being executed through a joint venture named Reliance Bangladesh LNG & Power (RBLPL), where Reliance Power holds a 51% ownership stake, and JERA holds a 49% stake. JERA, headquartered in Japan, is a collaborative endeavor between Tokyo Electric Power Group and Chubu Electric Power Group. Reliance Power and Petrobangla have entered into a memorandum of understanding (MoU) to create an LNG terminal with a capacity of 500 Mmscfd on Kutubdia Island, located near Chittagong. (Power Technology, 2020). Environmental and social monitoring is an integral part of the project, scheduled for completion by August 2022.


The Bangladesh Power Development Board (BPDB) will purchase power from the plant for 22 years at an agreed tariff rate (5.85 BDT). Reliance Bangladesh signed agreements with the Bangladesh government in September 2019 to build and operate the power plant, involving entities like the Power Division, BPDB, and Petrobangla (Financial Express, 2022). With a 22-year power purchase agreement (PPA), it demonstrates a commitment to sustainable energy. Aligned with ADB Safeguard Policy Statement Category A and classified as "Red" under the Environmental Protection Act of Bangladesh, the plant showcases a harmonious blend of advanced technology and environmental responsibility.


Land acquisition

The Bangladesh Government (GoB) through RBLPL has plans to build the 750 MW CCPP on land designated by the government. The chosen site for the plant is situated in Meghnaghat, within the surrounding area of the 35-acre government land allocated by BPDB (ESIA Report, 2017).


Finance

The execution of the 750 MW CCPP project at Reliance Meghnaghat will be carried out by RBLPL and funded by the Asian Development Bank (ADB) along with additional financial institutions. The project's total budget amounts to USD 1,265 million, with contributions from various sources, including USD 330.00 million from Asian Development Bank (ADB), USD 270.00 million from Japan Bank for International Cooperation (JBIC), USD 645.00 million from (JERA), and an undisclosed investment from Industrial Development Bank (IDB) (ESIA Report, 2017; BWGED).


Sponsors

The project is being executed through a joint venture named Reliance Bangladesh LNG & Power (RBLPL), where Reliance Power holds a 51% ownership stake, and JERA holds a 49% stake. JERA, headquartered in Japan, is a collaborative endeavor between Tokyo Electric Power Group and Chubu Electric Power Group (Power Technology, 2020).


Contractors

Samsung C&T will carry out the project with a turnkey approach. In a press statement on 1 October 2019, Samsung C&T announced that it had been granted a letter of award by Reliance on September 30, 2019. The media release mentioned that Samsung C&T, acting as the sole contractor, would take 34 months starting from October 2019 until July 2022 to construct the facility (bdnews24, 2019). Also, a segment of the American conglomerate General Electric (GE) has been awarded a contract to provide maintenance services, digital solutions, and equipment upkeep, including gas and steam turbines and plant-wide digital integration, for a 718-megawatt LNG-powered plant in Meghnaghat, Bangladesh, following GE's previous announcement of a gas turbine technology upgrade for the same plant (LNGPrime, 2021).


Fuel Supply

The project's demand for Liquefied Natural Gas (LNG) fuel will be met through a planned 24-inch Gas Pipeline connecting Kutumbpur to Meghnaghat, which is currently being established by GTCL (Gas Transportation Company Limited). The supply of RLNG/Natural Gas, amounting to 130 mmscfd at full load, is necessary to fulfill the fuel requirements (ESIA Report, 2017). The upcoming City Gate Station, situated nearby, will provide the necessary natural gas for the project. This supply will be facilitated by Titas Gas Transmission and Distribution, a subsidiary of Petrobangla (Financial Express, 2022).


Power Generation

The thermal system operates on a combined cycle process, with the Combined Cycle Power Plant Module comprising a 750 MW power unit where the net power generation would be 718 MW. Each Module includes two Gas Turbines, each with a capacity of 242 MW, accompanied by Electric Generators, two Heat Recovery Steam Generators, and a Steam Turbine Generator with a capacity of 269 MW. Employing cutting-edge heavy-duty industrial Gas Turbines, the plant uses GE 9FA technology, ideal for both base load and cyclic load operations in both open cycle and combined cycle modes (ESIA Report, 2017). The transformer will raise the voltage from 15.75kV to 400kV. The electricity from the steam turbine generator will be linked to the grid using a 400kV GIS line breaker. The produced power will be transmitted through a 400kV transmission system managed by the Power Grid Company of Bangladesh (PGCB) (Power Technology, 2020).


Environment

Liquefied Natural gas is a fossil fuel primarily composed of methane but can contain other hydrocarbons. When burned for power generation, it emits CO2, NOx, CO, VOCs, and PM, which can harm human health and contribute to air pollution. NOx causes respiratory issues, CO affects oxygen circulation, VOCs lead to various health problems, and ozone can form as a result. Particulate matter (PM) is harmful, especially PM2.5, linked to lung cancer and heart disease. Additionally, methane leaks during LNG production, which is a potent greenhouse gas. Peaker plants are less efficient and more polluting than combined cycle plants in power generation. The ESIA Report for the Reliance Meghnaghat 750 MW Combined Cycle Power Plant in Bangladesh, compiled by Adroit Environment Consultants Ltd was determined to follow ADB and IFC guidelines as well as local regulations. The project draws 1076 cubic meters per hour of water from the Meghna River and releases 206 cubic meters per hour which is a major threat to the aquatic organisms. According to their EIA report the plant operates within acceptable air and water quality limits and utilizes a closed-loop cooling system. Moreover, the air quality analysis indicates satisfactory conditions at the project site, with all parameters within limits which is uncommon for industrial zones like Narayanganj. The selected site's manageable environmental implications confirm its acceptability after weighing the alternatives. (ESIA Report, 2017). This report seems to be quite biased. 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.


Criticism

According to an ADB report, progress in the engineering, procurement, construction, and commissioning of the project has experienced a delay against the planned timeline as of March 2022. The overall achieved progress was around 82.4%, slightly behind the targeted 85.6%. Engineering work reached 98.6% compared to the planned 99.2%, and procurement progress stood at 98.7% against the intended 99.8%. The delay of approximately 3.2% was mainly due to the late delivery of the Steam Turbine component. The report was created by Tractable Engineering Private Limited (TEPL) for Reliance Bangladesh LNG & Power Limited (RBLPL) and the Asian Development Bank (ADB) (Financial Express, 2022).


References



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