LNG

Coal poses long-term threat to LNG in Bangladesh

Chinese investment in coal-fired power could limit demand growth for LNG in the country Chinese investment in coal-fired power could limit demand growth for LNG in the country.
By Andrew Walker 18 May 2018 0 30911
Signing of an EPC contract for a coal power plant in Bangladesh. Bangladeshi Ashuganj Power Station Co. signed an EPC contract with a Chinese consortium in March for a 400 MW coal power plant. (PA)

Plans to increase coal-fired power capacity in Bangladesh could limit demand growth for LNG in the country over the long term. 

The Bangladeshi government wants to increase the country’s power generation capacity from 13.8 GW now to 24.0 GW by 2021. To meet this target, it has sought 6 GW of new coal-fired capacity and 4 GW of gas-to-power capacity.

The high cost of imported LNG means Bangladesh is likely to favour coal for baseload generation, according to Lin Boqiang, professor at the China Institute for Studies...