Changes likely in Power System Master Plan
UNB
The governments recent move to promote LNG (liquefied natural gas) -based power generation has pushed for bringing a big change again in final draft of the Power System Master Plan (PSMP) 2016, official sources said, reports UNB.
The Power Cell, a technical wing of Power Division, Power Cell has prepared the PSMP through two Japanese consulting firms under the funding of Japan International Cooperation Agency (JICA) and submitted it to the government.
The latest PSMP outlined 57,000 MW power generation by 2041, designing 35 per cent electricity from coal, 35 per cent from gas and remaining 30 per cent from other sources including nuclear and renewable.
On the basis of the PSMP 2016, the government is now implementing a total of 8 coal-fired power plants which would generate 9,700 MW power next 5-6 years, officials said.
But the recent fall of liquid fuel price in the global market which resulted in availability of LNG at a relatively cheaper price has prompted the government to bring changes in its plan, said the officials.
We have to revisit the PSMP 2016 responding to the needs of the time to accommodate the governments latest move for LNG import and also LNG-based power plants, Mohammad Hossein, director general of Power Cell, told the news agency.
At present, the countrys power generation capacity is 12,365 MW of which some 61.69 per cent of power is being generated from gas while only 2.02 per cent is from coal, 21.26 per cent from imported furnace oil, 8.31 per cent from diesel, 1.86 per cent from hydro and remaining 4.85 per cent power is being imported from India.
But as per PSMP, the use of coal will increase and use of gas will come down for power generation.
Justifying the governments latest move for giving a bit of priority to LNG reducing dependence on coal, State Minister for Power and Energy Nasrul Hamid, We want to take the advantage of competitive price of LNG which is now considered to be less hazardous than coal in transportation and storage.
Officials said the government is considering both long term and short-term deal for import of LNG to mitigate the future risk of volatility of fuel price in the global market.
Under the new thought, the use of LNG or gas for power generation will go up and the use of coal as primary fuel reduce as the government has already moved to create facilities for more LNG import beyond the plan and allow setting up more CNG-based power plants beyond the PSMP 2016.
As per the recent plan, about 4000 mmcfd gas will be imported in the country through the LNG form and supply those to power plants and industries though re-gasification.
The government has already signed deals under which each of US firm Excellarate Energy and local firm Summit are setting up a daily 500 mmcfd supply capacity floating storage and re-gasification unit (FSRU) in Chittagong. Exellarates FSRU will start operation in April 2018 which Summit will start in October 2018.
Indian firm Reliance Group will also set up another SFRU of 500 mmcfd capacity by June 2019 and Chinese firm Hong Kong Shanghai Manjala another FSRU of 500 mmcfd capacity in June 2020.
Apart from this, the government signed memorandum of understanding with five more international companies to set up land-based LNG terminal in Moheshkhali and Paira Port areas.
To import LNG, the government has so far signed 5 contracts with different international supply countries and firms including Qatar.
In another bid, the government received expression of interest from 10 international and local companies who will supply LNG to the government.
Different companies under Power Division are also taking initiative to set up LNG-based power plants considering its competitive fuel cost, sources said.
