ACWA Power, a global leader in water desalination and power generation, announced signing a Memorandum of Understanding with the Bangladesh Power Development Board (BPDB) for a LNG-based power plant and terminal in Bangladesh.

As part of the agreement, ACWA Power will target the development of 3600 MW gas fired independent power plants representing a total investment amount of approximately $2.5 billion, that will help meet the country’s growing power demand.

The project will consist of the intended power plants as well as a regasification terminal on-ground with an expected additional investment of approximately $500 million. The plant will potentially be located in Maheshkhali, or an alternate location, upon completion of the feasibility study.

BPDP chairman Engineer Khaled Mahmood and ACWA Power chairman Mohammed Abunayyan, signed the agreement for the Natural Gas/R-LNG Based Combined Cycle Power Plant, one of the largest deals for Bangladesh’s power sector.

“As we continue to expand our global operations, we are proud to embark on this ambitious project with the Bangladesh government. We have a long legacy of working collaboratively with leadership in growing economies to sustainably supply their power and water needs at low cost. In line with the Bangladesh Vision 2021 and Vision 2041, we will be contributing to the energy security of the country,” said Paddy Padmanathan, chief executive officer of ACWA Power.

The signing will also mark ACWA Power’s largest gas-to-power development and its initial foray into the Bangladesh power market. ACWA Power will also work with Saudi Aramco for the first time for such a project.

“Expanding our investment portfolio is a key focus for the company and we are delighted to be working with BPDB,” said chief investment officer, Rajit Nanda.