Bangladesh leads in gas-fired capacity development in South Asia: Survey

Bangladesh leads in South Asia with over 23.6GW of gas-fired capacity in development, which is more than double the current operating capacity of 10.8GW in the region, according to a latest survey by Global Energy Monitor (GEM).

South Asia has over 34GW of gas-fired capacity in development, at an estimated cost of $29 billion.

“If built, this will increase the 52.3GW of existing gas-fired capacity in South Asia by 65 per cent, said the US-based non-governmental organisation which catalogues fossil fuel and renewable energy projects worldwide,” the survey said.

According to the survey, a boom in gas power plant development is now larger on a capacity basis than the build-out of new coal capacity.

Building all the gas plants currently in pre-construction or construction phases would
add more than 615GW of gas-fired capacity into the world, at an estimated cost of nearly $509 billion in capital expenditure and lock in decades of emissions.

By comparison, there is 456GW of coal plant capacity in development globally.

Bangladesh continues in pre-construction and construction phases of gas-fired capacity development although it is exceeding double than its operating capacity, the survey said.

Even as the existing gas-fired power plants in Bangladesh often sit largely idle, operating at 40 per cent capacity between 2019 and 2020, there continues to be planned future gas expansion, it said.

A recent analysis from IEEFA, which looked at proposed LNG-to-power projects in seven countries, estimated that 61 per cent of gas-fired capacity will not be built due to “unfavourable fundamental project and country-level factors.”

The global gas plant build-out is abundant, with the leading five countries constituting 39 per cent of new global gas-fired capacity in development, and the top 20 countries making up 75 per cent. In comparison, the top five countries represent 82 per cent of new coal-fired capacity in development globally.

Study shows that gas power plants currently in pre-construction will cost an estimated $380 billion and increase global gas-fired capacity by an additional 454GW.

Under construction gas power plants worldwide will cost an estimated $128 billion and raise global gas-fired capacity by nearly 161GW. Hence, the 615GW of gas-fired power plants in development surpasses the 457GW of coal power plants currently in development.

“Unlike coal, where China is the biggest culprit, the boom in gas plant construction is everywhere,” said Julie Joly, program director for Oil and Gas for Global Energy Monitor.

“Asian countries moving away from coal are switching to gas instead, and locking in decades of GHG emissions. Europe and the United States are expanding their gas fleets despite policy pledges to reduce emissions.”