Gas Shortage Delays Reliance Meghnaghat 718 MW Power Project

Industry: Energy & Power, Power
Company: Reliance Bangladesh LNG and Power Limited
Company Intelligence Tag: Business Insights

Reliance Meghnaghat 718 MW Power Project, one of three gas-based projects in Bangladesh, faces challenges due to gas shortage, hindering its commissioning. Despite 94% completion, the project requires gas supply and back feed for testing and commissioning activities. Temporary gas connection possibilities have been mentioned, but uncertainty remains regarding the project’s timeline and capacity.

The power plant, with a construction cost of $1 billion, is primarily developed by Reliance Power, but ownership will soon transfer to Japan’s Energy for a New Era (JERA). Originally scheduled for commercial production in August 2022, delays caused by COVID-19 pushed the timeline to this year. The plant requires 130 million cubic feet of gas per day to run at full capacity, which is currently unavailable. Funding from international banks and institutions supports the project, but concerns about gas supply persist. The completion of a pipeline project by mid-2024 aims to facilitate gas supply to new power projects. The energy department is actively seeking solutions to address the gas crisis and ensure the successful operation of gas-based power plants.

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