Summit’s largest power plant to launch by June next year

Meghnaghat II 590 MW Combined Cycle Power Plant, the largest of the plants owned by Summit Power International (SPI), is scheduled to start commercial operations by June 2023.

The Bangladeshi business conglomerate Summit Group and the US-based General Electronic are jointly implementing the project.

"The combined cycle power plant is going to be one of the most efficient power stations in the world which will ensure the best and efficient use of natural gas," said Summit Group Chairman Muhammad Aziz Khan while visiting the plant construction site in Meghnaghat, Narayanganj, yesterday.

Muhammad Aziz Khan said the plant would be a cheaper option for Bangladesh to generate electricity.

Production of electricity in a diesel-based plant costs Tk37, a furnace oil-based plant costs Tk17, and a gas-based plant costs Tk3-Tk3.5 per unit.

Currently, the Bangladesh Power Development Board (BPDB) cannot run all its gas-based power plants at full capacity due to a gas shortage, which has pushed it to choose hours-long load shedding across the country.

At present, gas-based power plants under public and private ownership need around 1,400-1500 mmcf gas daily, but there is supply of only 950 mmcf.

The Summit Chairman, however, expressed confidence about getting 95 mmcf gas required daily to run the power plant despite the gas crisis.

"We have a gas supply contract with Titas Gas Transmission and Distribution Company that confirmed us about the supply of gas. We have been suffering from a gas shortage because the government has suspended importing LNG due to its price volatility. But the price has started to decrease, so the gas shortage issue is irrelevant," he added.

Visiting the site, US Ambassador to Bangladesh Peter Haas said using advanced technology, the power plant will produce electricity with the lowest amount of pollution.

Expressing his country's willingness for more investment in renewable energy, he said, "Like Bangladeshi investors, American companies also want political stability, rule of law, and a corruption-free environment before making any foreign direct investment so that they can ensure return on investment."

Around 92% of the Meghnaghat II 590 MW Combined Cycle Power Plant's construction work has been completed and currently it is planning for a running of recommissioning tests, said General Electric's Chief Executive Officer Deepesh Nanda.

The cost of the project is estimated at $499.25 million.

Summit Power International (SPI) is the largest independent power producer (IPP) in the country, holding 19% of Bangladesh's total privately installed capacity and 8% of its total installed capacity, according to the conglomerate's website.  

SPI owns and operates a total of 18 power plants with a total capacity of 2,255 MW. Besides, the company has the capacity to produce 277 MW through its associate company, Khulna Power Company Limited (KPCL).