Public sector LNG-fired power plant on KNM site planned

The Ministry of Power, Energy and Mineral Resources plans to set up a LNG fired power plant, country's first project in public sector having capacity to generate 800MW of electricity on Khulna Newsprint Mills' (KNM) abandoned site.
As per decision, the North-West Power Generation Company Limited (NWPGCL) will set up the power project on 50 acres of abandoned land of Khulna Newsprint Mills Limited.
"The Ministry of Power, Energy and Mineral Resources Division recently took the decision with State Minister for Power and Energy Nasrul Hamid in the chair," a senior official of the Ministry told the Daily Observer on Wednesday.   
To meet the country's growing demand of electricity the government has already taken decision to set up a series of LNG-fired power projects sponsored by Indian Reliance Power Limited in private sector having combined capacity to generate 3000MW of electricity at Meghnaghat, Cox's Bazar and Chittagong. 
"The land belongs to the Bangladesh Chemical Industries Corporation (BCIC) and it sought Tk 864.24 crore for handing over the land to NWPGCL. We are negotiating on it," the official added.
Earlier, the Ministry of Power, Energy and Mineral Resources asked to the Deputy Commissioner of Khulna to fix the land tariff for setting up the plant on August 3, 2016.
 The power generation cost is determined on land cost, EPC contract cost and fuel cost as well, official concerned said.
 "We know that the tariff of a LNG- fired plant would be higher than gas- fired one. However, we have some bench mark as the Indian Reliance has already proposed to set up a similar plant under phase-1 in Meghnaghat (750MW) with the tariff at Tk 7.9946 per unit. The phase-2 was proposed in Chittagong (1500MW) with power tariff at Tk 8.21 per unit. The Power Division will finilise the tariff soon," he said.