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Raozan 400MW (BPDB) LNG Power Plant

  • Jun 25
  • 5 min read

Current Status: Pre - Construction

Source: Representational Photo (Energy and Power Magazine, 2021)


Raozan 400 MW LNG Power Plant  also called  Raozan 400MW combined cycle power plant is a LNG based power plant. The Bangladesh Power Development Board (BPDB) functions as a comprehensive electric utility in Bangladesh. It generates electricity through various means including gas, furnace oil, diesel, hydro, coal, and solar sources. BPDB manages diverse power generation facilities such as independent power plants, small independent power producers, rental power plants, and the Rural Electrification Board. These facilities employ technologies like steam turbines, gas turbines, combined cycles, reciprocating engines, hydro, and solar PV (Power Technology,2021). The Cabinet Committee on Government Purchase (CCGP) has granted its endorsement for a total of nine propositions. Among these, there was an approval for the establishment of a 400MW power facility in Raozan, located in Chattogram. The expected commercial operation date of the power plant is in 2025. 


Capacity

The power plant will be constructed with an installed capacity of 400MW. BPDB tender documents describe the capacity as 400 MW ±10%. It means that the  actual installed capacity may range between approximately 360 MW and 440 MW (BPDB, 2021). 


Context

In 2021, BPDP signed for a new power plant in Raozan 400 MW which will be carried out by a Chinese firm by using LNG fuel and the expected commissioned date is December, 2025 (BPDB,Annual Report ,2021-2022). The decision was reached during the 18th meeting of the CCGP, which was conducted virtually under the leadership of the Finance Minister. Following the meeting, the Cabinet Division Additional Secretary addressed reporters virtually. She conveyed that SEPCO-III Electric Power Construction Company Limited from China has been designated to construct the power plant in Raozan, Chattogram. The project, which falls under the jurisdiction of the Bangladesh Power Development Board (BPDB), is estimated to cost approximately Tk 17.97 billion (Financial Express, 2021). The project has since undergone at least two re-tenders by BPDB. After the first re-tender the project cost rose to approximately Tk 2,087 crore, and after the second re-tender to approximately Tk 2,187 crore. As of September 2024, implementation has become uncertain as no contractor had been formally engaged to begin construction (The Daily Observer, 2024).

Land Acquisition

The proposed 400 MW CCPP is planned to be built on BPDB's own land adjacent to the existing Raozan 420 MW thermal power plant (Chattogram Power Station), which covers approximately 68.92 acres (The Daily Observer, 2024).


Finance 

Bangladesh Power Development Board will be the owner of that power plant and around 21 crore BDT is fixed for the cost of Rawzan power plant.After re-tendering, the project cost is reported to have increased to approximately Tk 2,087 crore (1st re-tender) and Tk 2,187 crore (2nd re-tender) (The Daily Observer, 2024).


Sponsor

Bangladesh Power Development Board (BPDB) will sponsor the completion of the power plant.


Contractors

SEPCO-III Electric Power Construction Company Limited, China will set up the power plant at Raozan in Chattogram with around Tk 1,796.72 crore under the Bangladesh Power Development Board (BPDB). As of September 2024, no final EPC contract had been executed with SEPCO-III to begin construction. The project underwent multiple re-tenders after the initial CCGP approval .(The Daily Observer, 2024).


Fuel Supply

LNG will be used to operate Raozan 400MW combined cycle power plant and BPDP will arrange that fuel.


Power generation

According to BPDB the power plant will start the power generation in 2025 and the expected capacity is 400MW. The unit price of per kilowatt hour electricity will be Tk 1.38 (Energy & Power,2021). As of 2024, actual commercial operation has not commenced. The COD originally set for December 2025 has not been achieved. The project remains in the pre-construction stage due to procurement difficulties (The Daily Observer, 2024).

  

Environment

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory for any industry (MOLJPA 1995). Polluting industries, such as power plants, must undergo 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. This power plant will cover a large area and that will have a potential  environmental impact on surroundings. Leakage of LNG during the extraction, transportation, and storage of natural gas is a considerable environmental concern. Methane, being a potent greenhouse gas, contributes significantly to climate change. Even small leaks can have a large impact due to the high potency of methane as a greenhouse gas. Under the Environmental Conservation Rules 2023 (which replaced ECR 1997), Red category projects such as gas and LNG-fired power plants now require both a Location Clearance Certificate (LCC) and an Environmental Clearance Certificate (ECC), and must submit a full EIA. Without these clearances, no land development, construction, or utility connections are permitted  (AJEP 2025).


Criticism

According to Mujib Climate Prosperity Plan (MCPP) Bangladesh Government wants to ensure 100% renewable energy by 2050. But this decision to establish a new large power plant of BPDB  will affect this aim and the environment will be affected a lot by this new power plant. 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). The project's prolonged pre-construction status further undermines Bangladesh's renewable energy transition goals. Civil society groups and researchers have highlighted that LNG-based power plants with 25+ year lifespans will likely overshoot Bangladesh's 2050 net-zero target deadline under the MCPP (TBS News, May 2024).


References

 
 
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