IEEFA projects 33% of LNG investments in Bangladesh to be feasible
Key project risks in Bangladesh include rising gas and power subsidies increasing default risks within LNG-to-power value chain
Undated photo shows a top view of Moheshkhali Floating LNG Terminal in the Bay of Bengal Collected
Tribune Desk
Publish : 15 Dec 2021, 03:28 PMUpdate : 06 Jan 2022, 10:24 AM
The Institute for Energy Economics and Financial Analysis (IEEFA) anticipates 33% of total LNG investments in Bangladesh to be feasible, including 3.8mtpa of LNG regasification capacity and 3.1GW of gas-fired power capacity.
The IEEFA made the projection in its recently published report that examines the proposed pipeline of LNG-to-power projects in seven countries: Bangladesh, Vietnam, Thailand, the Philippines, Cambodia, Myanmar and Pakistan.
It tracked 139 million tons per annum (mtpa) of proposed LNG import terminal projects and 99 gigawatts (GW) of proposed gas-fired power projects in the seven countries, said a media brief.
Based on fundamental project and country-level factors, 62% of proposed LNG import terminal capacity and 61% of gas-fired power capacity is unlikely to be viable. After considering commercial project finance lending market constraints, the IEEFA found that an additional 5% of power projects in the region are unlikely to secure financing.
In total, the IEEFA anticipates that 52.6mtpa of terminal capacity and 33.2GW of gas-fired power capacity will be feasible.
The figures for Bangladesh represent 25% and 34% of the proposed pipeline of terminal and power capacities, respectively.
Key project risks in Bangladesh include rising gas and power subsidies increasing default risks within the LNG-to-power value chain; low regulated tariffs putting increasing financial strain on state-owned enterprises; regulatory whiplash paralyzing LNG developments; and technical roadblocks and price volatility causing the government to reverse course on LNG procurement plans.
Meanwhile, in Pakistan, the IEEFA considers 98% of proposed LNG investments to be viable. The numbers stand at 22% in Vietnam, 64% in Thailand, 29% in the Philippines, 11% in Cambodia and 14% in Myanmar.
IEEFA projects 33% of LNG investments in Bangladesh to be feasible
Key project risks in Bangladesh include rising gas and power subsidies increasing default risks within LNG-to-power value chain
The Institute for Energy Economics and Financial Analysis (IEEFA) anticipates 33% of total LNG investments in Bangladesh to be feasible, including 3.8mtpa of LNG regasification capacity and 3.1GW of gas-fired power capacity.
The IEEFA made the projection in its recently published report that examines the proposed pipeline of LNG-to-power projects in seven countries: Bangladesh, Vietnam, Thailand, the Philippines, Cambodia, Myanmar and Pakistan.
It tracked 139 million tons per annum (mtpa) of proposed LNG import terminal projects and 99 gigawatts (GW) of proposed gas-fired power projects in the seven countries, said a media brief.
Based on fundamental project and country-level factors, 62% of proposed LNG import terminal capacity and 61% of gas-fired power capacity is unlikely to be viable. After considering commercial project finance lending market constraints, the IEEFA found that an additional 5% of power projects in the region are unlikely to secure financing.
In total, the IEEFA anticipates that 52.6mtpa of terminal capacity and 33.2GW of gas-fired power capacity will be feasible.
The figures for Bangladesh represent 25% and 34% of the proposed pipeline of terminal and power capacities, respectively.
Key project risks in Bangladesh include rising gas and power subsidies increasing default risks within the LNG-to-power value chain; low regulated tariffs putting increasing financial strain on state-owned enterprises; regulatory whiplash paralyzing LNG developments; and technical roadblocks and price volatility causing the government to reverse course on LNG procurement plans.
Meanwhile, in Pakistan, the IEEFA considers 98% of proposed LNG investments to be viable. The numbers stand at 22% in Vietnam, 64% in Thailand, 29% in the Philippines, 11% in Cambodia and 14% in Myanmar.