October 17, 2019 / 6:19 PM / a month ago

Saudi Aramco, ACWA Power to invest $3 bln to build LNG plant and terminal in Bangladesh

DHAKA, Oct 17 (Reuters) - Saudi Aramco and ACWA Power signed a deal with Bangladesh on Thursday to develop a 3,600-megawatt LNG-based power plant and terminal in the country.

As part of the deal, the Saudi companies will invest around $3 billion, the Bangladesh government said at a signing ceremony.

The Bangladesh prime minister’s investment adviser, Salman Fazlur Rahman, said the agreement “represented one of the largest deals in Bangladesh’s lucrative power sector” and reflected confidence in the country’s “investment-friendly environment.”

ACWA chairman Mohammad Abdullah Abunayyan said his company would make the direct investment by next year. He described the project as a “landmark” that would be the company’s largest gas-to-power development and its first association with Aramco in such a project.

The plant and terminal are set to be built in either the Moheshkhali area of Cox’s Bazar or the port of Payra.

Riyadh and Dhaka have long maintained close bilateral relations, with the Kingdom being the largest source of Bangladesh’s vital foreign remittances.

Relations have deepened in recent years, with the two countries signing a defense agreement in February. In March, a high-powered 52-member Saudi investment delegation signed a host of agreements and MoUs worth up to $20 billion. (Reporting by Ruma Paul, Editing by Rosalba O’Brien)

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