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Riyadh-based ACWA Power signed a memorandum of understanding with the Bangladesh Power Development Board (BPDB) for a LNG-based power plant and terminal in Bangladesh, it said in a statement on Tuesday.
As part of the agreement, the company will target the development of 3,600 MW gas fired independent power plants, with a total investment amount of $2.5 billion.
The project will consist of intended power plants as well as a regasification terminal on-ground with an expected additional investment of $500 million. The plant will potentially be located in Maheshkhali, or an alternate location, upon completion of the feasibility study, the statement noted.
“In line with the Bangladesh Vision 2021 and Vision 2041, we will be contributing to the energy security of the country and ensuring the foundations of its success for generations to come,” said Paddy Padmanathan, CEO, ACWA Power.
Rajit Nanda, Chief Investment Officer of ACWA Power, added: “This is an exciting project for the company and we look forward to working with strategic partners such as Saudi Aramco to bring it to life and create value for the people and economy of Bangladesh.”
Bangladesh’s power sector is one of the fastest growing in South Asia, with a current installed capacity of around 24,000 megawatt (MW) electricity from 3,200 MW in 2009.
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