India’s Reliance Power will invest $3 billion in developing floating LNG terminal and power plant in Bangladesh.

The Indian private sector company and Bangladesh Power Development Board (BPDB) signed a Memorandum of Understanding (MoU) on Saturday to develop 3,000 MW of LNG based combined cycle power project in Bangladesh in phases, along with a Floating Storage and Re-gasification Unit (FSRU) based LNG terminal to supply re-gasified LNG to the power project.

The MoU was signed during the visit of Prime Minister of India Narendra Modi to Dhaka.

The land for the power project shall be provided by BPDB at appropriate locations, Reliance Power said in a statement adding that the FSRU terminal shall be set up at Maheshkhali Island in Cox’s Bazar district of Bangladesh.

According to Reliance Power, the project is in line with the Master Plan of 2010 for Bangladesh, under which BPDB envisages to develop a 3,000 MW LNG based power project so as to meet the growing power demand and supplement the domestic gas reserves in the country.