Japanese energy-biggie JERA has acquired the Meghnaghat 718-megawatt (MW) power plant from Indian Reliance and it awaits a nod to initiate electricity generation commercially, according to sources.
The Japan's Energy for a New Era (JERA) carried out a test run of its power plant in late October but did not get sufficient natural gas to initiate operation, they said.
Since 2019, according to market insiders, JERA has funnelled investment worth $1.0 billion for the power plant project.
The Japan Bank for International Cooperation, a Japanese private development bank like JICA, and the Asian Development Bank have investments in the 718-MW JERA Meghnaghat Power Limited.
Japanese Mizuho Bank, SMBC, MUFG and Societe Generale-all backed by the Nippon Export and Investment Insurance-also invested in the project, they said.
The project has secured major equipment from the General Electric (GE), and the Samsung C&T Corporation built the power plant project as an engineering, procurement and construction (EPC) contractor.
JERA recently has urged the interim government to ensure the supply of natural gas to its power plant with an eye to initiating commercial operation.
But the state-run Titas Gas Transmission and Distribution Company Limited is yet to supply gas to the facility.
When contacted, Smitesh Vaidya, head of contracts & commercial at JERA Meghnaghat Power Ltd, said, "The power plant is just a few days away from achieving commercial operations, subject to uninterrupted gas supply."
"The project has been strongly supported by JERA as sponsor as well as by development finance institutions, including the Asian Development Bank and the Japan Bank for International Cooperation."
"We have requested support from the ministry and the BPDB to ensure COD (commercial operation date) of the project by the end of December 2024," added Mr Vaidya.
"We look forward to making a significant contribution to the Bangladesh power grid through the state-of-the-art technology, highly efficient turbines and competitive tariff," he continued.
Although the project is yet to get COD due to inadequate gas supply, two adjacent gas-fired combined cycle power plants (CCPPs)-Summit's Meghnaghat 589-MW CCPP and Unique Meghnaghat 584-MW CCPP-attained CODs during late April and late January respectively this year and initiated running commercially since then, according to a senior BPDB official.
The state-run Bangladesh Power Development Board (BPDB) inked a power purchase agreement (PPA) in 2019 to buy electricity from the 718-MW plant for 22 years at a levelised tariff rate of 7.3123 US cents (Tk 5.84) per kWh.
Separately, the Japanese conglomerate has shown interest in setting up the Matarbari land-based LNG terminal.
JERA operates 11 land-based LNG terminals in Japan. Japan is prone to several environmental disasters and such land-based terminals provide a stable source of energy there.
"Jera is interested in future investments in the land-based LNG terminal project, renewable project development (solar, wind), alternative energy (hydrogen, ammonia) and LNG supply," said a recent letter to the government.
Such investments will reach $2-$3-billion FDI in next 05-10 years. From a long-term perspective, Jera will also look at promoting net zero emissions for Bangladesh and like to work together for a sustainable future.
"In future," writes the letter, "Jera intends to establish a local office in Dhaka."
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