Bangladesh is at the forefront of gas-fired capacity expansion in South Asia, surpassing double its operating capacity, according to the latest Global Energy Monitor (GEM).
The report shows Bangladesh developed approximately 41 gigawatts (GW) of gas-fired infrastructure, although the country is struggling severely with gas shortage from domestic sources.
A 13 per cent surge in global oil and gas-fired power plant development, reaching 783GW in projects from announcement to construction phases over the past year, the GEM new report reveals.
Asia takes the lead with nearly two-thirds of the capacity and costs, amounting to 514GW and an estimated $385 billion in development, primarily concentrated in China and Southeast Asia.
The report highlights that if these projects materialize, the global oil and gas fleet will expand by one-third, incurring an estimated capital expenditure of $611 billion.
Bangladesh ranks first in South Asia in terms of gas expansion. Currently, 55 per cent of electricity generation is from gas in Bangladesh, with about a quarter of the LNG imported, the report reads.
The country is struggling with power outages due to fuel shortages, which could result in rolling blackouts until 2026.
Asia has nearly two-thirds of the world’s oil and gas plant capacity in development, with China hosting a fifth of the world’s development capacity, more than the next three leading countries — Brazil, Vietnam, and Bangladesh – combined.
The construction began on 207 GW of new oil- and gas-fired power plants, a 23 per cent increase over the previous year. Almost three-quarters of this capacity are in Asia, mainly concentrated in China, the report said.
While high LNG prices have pushed some countries in Asia, including Bangladesh and Pakistan, away from procuring LNG cargoes, analysts have also shown that the costs of electricity from solar and wind are on average below the cost of gas-fired power, and well below such cost in China.
Jenny Martos, project manager of the Global Oil and Gas Plant Tracker, said “Gas continues to grow even with its reputation unravelling as a cheaper, cleaner and reliable transition fuel. Price volatility has led many countries to turn their backs on gas plans.”
