The Asian Development Bank’s (ADB) Board of Directors has approved debt financing and partial risk guarantees totalling $583 million to develop the Reliance Bangladesh Liquefied Natural Gas (LNG) and Power Project. The financing package of ADB includes loans and partial risk guarantees for the power generation facility, as well as for the LNG terminal and the power project, being set up for $1 billion.
The Project, which includes a power generation facility to be located in Meghnaghat, near Dhaka, and an LNG Terminal, near Kutubdia Island south of Chitagong, will significantly increase power generation and improve energy infrastructure in Bangladesh.
Diversifying Bangladesh’s sources of energy is critical for the country as demands for natural gas have placed significant pressures on the country’s domestic gas reserves. New LNG import facilities will enable the country’s existing gas-department infrastructure to remain viable while opening the country to access natural gas from global markets.