Reliance Power studies Bangladesh LNG options

Vol 20, PW 4 (03 Nov 16) Midstream & Downstream

Anil Ambani-controlled Reliance Power is studying whether to deploy a FSRU or construct a land-based terminal to import LNG to fire a proposed 3000-MW power station at Meghnaghat in Bangladesh south of Dhaka.

"Reliance has hired a consultant to prepare a DFR," reports a source. "By February or March next year (2017) the report should be ready." Based on this Reliance will decide whether to go for a FSRU or land terminal to fire the entire 3000-MW project.

For now Reliance already has an idea of a suitable FSRU capacity and gas requirement. In no doubt is that Reliance will hire a FSRU in the short term to fire the initial 750-MW phase after receiving in-principle approval from Bangladesh authorities on May 4 last year (2016).

Until now Reliance says the FSRU will be anchored at Maheshkhali Island in Cox's Bazaar district. "A FSRU will allow Reliance to receive gas quickly," adds our source.

"Reliance is in talks with FSRU and LNG suppliers all over the world." Reliance plans to salvage turbines and equipment from its near defunct 2000-MW Samalkot power station in Andhra Pradesh for its Bangladesh project. "All the equipment is ready at Samalkot," we hear, "and can be shipped over anytime." By December this year Reliance hopes to sign a PPA with the Bangladesh Power Development Board.