Island energy, industrial hub plan eyes $65b investment over 30 years

Md Sarowar Alam, Mida member and additional secretary, said a comprehensive masterplan has been prepared based on a survey conducted by US-based McKinsey & Company.

“The plan will be implemented in three phases: the first up to 2030, the second from 2030 to 2040, and the third from 2040 to 2056,” he told The Business Standard.

Implementation in 3 phases

The first phase, from 2026 to 2030, will focus on infrastructure and energy projects, including the Matarbari deep-sea port, two additional coal-fired power units, solar plants, a third floating storage and regasification unit (FSRU), and an onshore LNG terminal.

The first phase of the LNG terminal is estimated to cost $2 billion. Mida also plans to commission the Single Point Mooring (SPM) system by December 2026 and develop a dry dock in Maheshkhali with around $1.5 billion in foreign investment.

The second phase, from 2030 to 2043, will focus on infrastructure for the economic zone, including a township, utilities, roads, embankments and multimodal yards.

A $10 billion oil refinery and petrochemical complex is planned for 2031-2036. Other projects include a $150 million LPG plant, bulk and private terminals, and a logistics park under the second phase of the Matarbari port.

The final phase, from 2043 to 2056, aims to establish Maheshkhali-Matarbari as a major industrial, commercial and tourism hub. Plans include completing the township, expanding manufacturing facilities, developing international tourism infrastructure and building venues for conferences, exhibitions and business events.

Energy sector to attract major investment

The largest proposed project is a $10 billion oil refinery and petrochemical complex under the Bangladesh Petroleum Corporation (BPC).

According to the Mida report, the complex will cover around 1,200 acres and process 150,000-200,000 barrels of crude oil a day. Scheduled for 2031-2036, it will also include petrochemical production units, an SPM system, and maritime infrastructure.

Mida has also proposed a $2 billion onshore LNG terminal, to be developed by Rupantarita Prakritik Gas Company on 156 acres. It will initially have a regasification capacity of 1,000mmcfd, with the first phase targeted for completion between 2026 and 2031.

Separately, Petrobangla plans a third FSRU-based LNG terminal with a capacity of 600mmcfd. Approval of the project agreement is targeted for November 2026, with construction scheduled for completion by June 2028.

The BPC plans to build a $150 million LPG plant on 51 acres between 2027 and 2034. The facility will have storage capacity of 1,000 tonnes and handle 2 million tonnes of LPG annually.

Power generation capacity to exceed 6,000MW

The first two coal-fired power units, with a combined capacity of 1,200MW, were built at a cost of Tk48,912 crore and have been operational since 2025.

Another 1,200MW is planned through the third and fourth units, with implementation scheduled for 2026-2034 at an estimated cost of Tk5,042 crore. A 70MW solar plant, costing an estimated Tk719 crore, is also targeted for completion by 2029.

The plan targets 1,200MW of coal-fired and 230MW of solar generation capacity by 2030. Total capacity is projected to reach 5,660MW by 2040 and 6,060MW by 2050.

SPM to save Tk800cr annually

The SPM system is one of the key infrastructure projects in Mida’s plan. Implemented by Eastern Refinery Limited, the project cost Tk8,216 crore. 

Oil unloading currently takes around nine days. The SPM system is expected to bring this down to three days, cutting the time by nearly 67%. 

The resulting efficiency gains are projected to save around Tk800 crore annually. The system is targeted for commissioning by December 2026, according to Mida.

Matarbari port to reshape trade

The Matarbari deep-sea port is central to the Maheshkhali-Matarbari masterplan, with the authorities expecting it to reshape the country’s trade dynamics.

Designed to handle vessels with a draft of up to 14.5 metres, the port will accommodate container ships up to 338 metres long, with capacities of 8,000 TEUs. Unlike Chattogram and Mongla ports, it will allow larger vessels to dock without waiting for favourable tides.

The first phase, scheduled for January 2020-December 2029, includes a breakwater, access channel, basin, container and multipurpose terminals, and an access road.

The next phase, targeted for completion by 2030, includes further dredging and LNG and LPG terminals. By 2041, the plan envisages a second bulk and container terminal and a logistics park at the mouth of the Kohelia River.

A 27km port access road is being built to connect the port with the national highway. The road will comprise 16.5km of highways and 14 bridges spanning a combined 10.5km. The project began in January 2020 and is scheduled for completion in December 2029.

Dhalghata EZ prepares for investment

To promote industrialisation and employment, Mida is developing the Dhalghata economic zone on 1,240 acres at an estimated cost of Tk1,195 crore. Around 570 acres have already been allocated to three companies.

Planned facilities include an administrative building, roads, water pipelines, sewerage systems, gas connections, an effluent treatment plant, boundary walls and parking facilities. Development of the economic zone is targeted for completion by 2030.

Dry dock to bring $1.5b in FDI

Mida is also planning to establish an international-standard dry dock, which could attract around $1.5 billion in direct foreign investment.

The facility is expected to provide ship repair and maintenance services. It could also help save foreign currency currently spent on ship repairs abroad.

Under the proposed investment structure, the government is not expected to bear any direct financial liability for the project, the report said.

Land, financing, dredging pose challenges

The Mida report also flags several challenges, including securing land for the oil refinery and petrochemical complex, developing infrastructure for LNG terminals and gas transportation, and ensuring regular dredging of the port’s access channel.

Authorities are also exploring options for LPG unloading jetties, including sharing the coal jetty, converting an existing oil jetty or building new facilities.