Bangladesh looking to shift from coal to LNG

• 3 years ago (2020-11-02)
• David Flin

Asia 859 Coal 282 Gas 379

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Bangladesh is looking at options to shift from coal-fired power plants to those operating on LNG, due to the high cost of new power plants. Government plans to review construction options to reduce dependence on coal as power demand rises sharply in the country.

The country plans to have 26 coal-fired power plants. Of these, two are functional, six are under construction, and the remained are at the planning stage. The government will review all of them.

The Ministry of Power, Energy, and Mineral Resources has asked Prime Minister Sheikh Hasina to approve the conversion of 13 coal-fired power plants, which have not yet been built, to LNG-based plants.

A joint study by Transparency International Bangladesh and Bangladesh Poribesh Andolon said: “It would cost Bangladesh an estimated $2 billion annually to import large volumes of coal to power the proposed coal plants.” This inability to finance coal-based plants is thus driving the country to switch to LNG.