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Anwara 590 MW LNG Power Plant

  • Jun 18
  • 5 min read

Current Status: Construction


Anwara 590 MW LNG Power Plant, also known as United Chattogram Power Plant, is an under-construction Combined Cycle (CC) power plant situated in Rangadia of Karnaphuli thana under Anwara Upazila in Chattogram District of Bangladesh (Location: 22.2364, 91.8268) probable. It is sponsored by United Chattogram Power Limited (UCPL) which is sponsored by United Enterprises & Company Limited (UECL), Kyushu Electric Power Company Incorporated (KEPC), and Sojitz Corporation. The power plant is to be operated as a private Independent Power Producer (IPP) for 22 years starting from the date of commercial operation. The sponsors declared its Required Commercial Operation Date (RCOD) on  28 January 2026. According to the BPDB report, the plant is expected to be in commercial operation in July 2026 (বিউবো, 2026). The power plant was to retire on 27 January 2048. 


Capacity

The installed (gross) and derated (net) capacity of the power plant will be 600 MW and 590 MW respectively.


Context

Bangladesh Power Development Board (BPDB) and United Chittagong Power Limited have signed a power purchase agreement on 28 October 2021 to construct a 590 MW power plant at Anwara in Chittagong District. United Group is working toward a more effective and environmentally sustainable power plant layout because of its experience with reciprocating engine power plants. In order to do this, United Group's most recent endeavour, the largest power plant in the nation with an H-Class Gas Turbine in a single shaft configuration will be built there (United Group). On 23 January 2019, the Cabinet Committee on Public Purchase authorised six proposals in total, one of which was to build a 590 MW power plant in Chittagong for the private sector. The first meeting of the new committee after the creation of the government following the victory of the Awami League in the general election on December 30 was presided over by the new Finance Minister, AHM Mustafa Kamal, according to the United Nations of Bangladesh (UNB). Mustafa Kamal briefed the media on the meeting's outcome following it. A proposal from the Power Division was approved by the committee, allowing the establishment of a 590 MW combined cycle power plant in Anwara, Chittagong, by a consortium of three companies, including United Enterprise and Co Ltd of Bangladesh and two other companies from China. The power plant will be powered by imported re-liquefied natural gas (RLNG) or natural gas, as per the proposal (Dhaka Tribune, 2019). Mainuddin Hasan Sharif, the chairman of United Group and managing director of United Chattogram Power Limited (UCPL), and Saiful Islam Azad, the secretary of the BPDB, signed the contract on behalf of their respective parties at a meeting at Biduyt on October 28, 2021 which was attended by other senior officials from the power division, BPDB, and UCPL, and speakers included Power Secretary Habibur Rahman and BPDB Chairman Belayet Hossain. At the event, two other contracts were also signed: a gas supply agreement (GSA) with Karnaphuli Gas Distribution Company Limited and an implementation agreement (IA) with Power Grid Company of Bangladesh (PGCB) (Financial Express, 2021).


Land Acquisition

According to UNB, the UCPL would construct the plant on 12.5 acres of land  on the banks of Karnafuli River in Anwara of Chattagram  and open for business on January 28, 2026. 


Finance

The estimated project cost is $539.912 million or BDT 5,631.9616 crore (according to 18 September, 2023). State-owned Bangladesh Power Development Board (PDB) would acquire power from the plant for more than 22 years at a levelized tariff of $0.037 or BDT 4.055 per unit (kilowatt hour), which is comparable to BDT 2.95 when it runs on natural gas ( Power Technology,2021). If it uses R-LNG, the price per kilowatt hour (per unit) will be US Cents 6.8043, which is equivalent to BDT 5.4 .(The Financial Express,2021). A unit of electricity will cost BDT 2.95 – BDT 5.44 (The Business Standard,2021).


Sponsor

The powerplant is sponsored by United Chattogram Power Limited, a JVC of United Group (60%), Kyushu Electric Power Company (20%) and Sojitz Corporation (20%). United Group will own the remaining 60% of the project, with two Japanese companies owning the other 40%, according to BPDB authorities.


Contractors

Engineering and Procurement (EPC) services for the gas fired power project are anticipated to be provided by China Energy Construction Group, China Energy Engineering Group Co. Limited (CEEG), and Northwest Construction and Investment.


Power Generation

This powerplant is currently in the construction stage. So, no generation is made from it now. But the projected outcome of this power plant is 590 MW.


Fuel

GTCL (Gas Transmission Company Limited) is the fuel supplier of Anwara 590 LNG power plant.


Capacity Charge

The estimated lifetime capacity charge over the 22-year contract period would be approximately Tk 19,947 crore at 90% utilization, Tk 14,406 crore at 65% utilization, and Tk 8,865 crore at 40% utilization. This indicates that the total capacity payment increases significantly as plant utilization rises.  


Environment

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is mandatory for any industry (MOLJPA 1995). The polluting industries, such as power plants, have to go through an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 2017 (MOEFCC 1997). But, to date, no IEE or EIA report has been conducted for the power plant.Though the use of LNG has been instrumental in lowered emissions and improved air quality, natural gas does have an environmental contamination footprint, including methane emissions and carbon emissions (CLNG,2021).


Criticism

Bangladesh's LNG demand is unlikely to surpass pre-Russo-Ukrainian war levels due to currency devaluation and supply challenges. Around 20 percent of it’s gas demand is met with LNG, but contracts with key suppliers have decreased. Global LNG dynamics, driven by European demand and supplier preferences, make it an expensive and unreliable energy source. Limited long-term contracts and currency pressures further complicate Bangladesh's LNG prospects, raising doubts about fuel supply of new LNG based power plants in the coming years (The Financial Express, 2023). According to the environmental conservation rule 2023 the project falls in the “Red” indicating it as a potential harmful project for the environment (MOEFCC 2023).Bangladesh continues to face gas supply shortages despite expansion plans for LNG infrastructure. Energy sector assessments in 2026 indicate that gas allocation to power plants remains below installed gas-fired generation requirements, creating concerns regarding the long-term utilization and fuel security of new LNG-based power projects, including Anwara 590 MW power plant (Reddit, 2026). 


References

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