Changes likely as govt moves to promote LNG
The government's recent move to promote LNG (liquefied natural gas)-based power generation has pushed for a change again in the final draft of the Power System Master Plan (PSMP) 2016, said official sources.
The Power Cell, a technical wing of the Power Division, has prepared the PSMP through two Japanese consulting firms under the funding of Japan International Cooperation Agency (Jica) and submitted it to the government.
The latest PSMP outlined 57,000 MW power generation by 2041 -- 35 percent electricity from coal, 35 percent from gas and remaining 30 percent from other sources.
On the basis of the PSMP 2016, the government is now implementing eight coal-fired power plants which would generate 9,700 MW power next five to six years, the officials added.
But the recent fall of liquid fuel price in the global market which resulted in availability of LNG at a relatively cheaper price has prompted the government to bring changes in its plan.
“We have to revisit the PSMP 2016 responding to the needs of the time to accommodate the government's latest move for LNG import and also LNG-based power plants,” said Mohammad Hossein, director general of Power Cell.
At present, the country's power generation capacity is 12,365 MW of which some 61.69 percent of power is being generated from gas while 2.02 percent from coal, 21.26 percent from imported furnace oil, 8.31 percent from diesel, 1.86 percent from hydro and the remaining 4.85 percent power is being imported from India.
Justifying the government's latest move, State Minister for Power and Energy Nasrul Hamid, said, “We want to take the advantage of the competitive LNG price. It is now considered to be less hazardous than coal in transportation and storage."
Officials said the government is considering both long-term and short-term deal for LNG import to mitigate the future risk of volatility of fuel price.
As per the recent plan, about 4,000 mmcfd (million cubic feet per day) gas will be imported in LNG form and supplied to power plants and industries though re-gasification.
The government has already signed deals under which the US firm “Excellarate Energy” and local firm “Summit” are setting up a daily 500 mmcfd supply capacity floating storage and re-gasification unit (FSRU) in Chittagong. Exellarate's FSRU will start operating in April 2018 and Summit in October 2018.
Indian firm Reliance Group will also set up another FSRU (500 mmcfd) by June 2019 and Chinese firm Hong Kong Shanghai Manjala another one with same capacity in June 2020.
The government also signed a memorandum of understanding with five more international companies to set up land-based LNG terminal in Moheshkhali and Paira Port areas.
To import LNG, the government has so far signed five contracts with international supply countries and firms including Qatar. It also received expression of interest from 10 international and local companies who will supply LNG.
Different companies under the Power Division are also taking initiative to set up LNG-based power plants.