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Tuesday, 22 December 20
COAL DEMAND IS RISING QUICKLY IN PAKISTAN AND MORE SLOWLY IN BANGLADESH - IEA
IEAPakistan had 150 MW of installed coal power capacity in 2015. Since 2017, in addition to a few small plants for industry, Pakistan has commissioned four coal-fired power plants as part of the China-Pakistan Economic Corridor project: the 1 320 MW Sahiwal plant in Punjab; 1 320 MW Port Qasim plant in Sindh; 1 320 MW Hubco plant in Balochistan. All three use imported coal. The 660 MW Engro Powergen plant in Thar (Sindh province) operates on lignite from Thar Block II.
 
These power plants, together with more than 10 Mt used by the industry sector (mostly for cement), raised coal consumption in Pakistan to 20 Mt in 2019. Coal consumption is estimated at around 25 Mt in 2020 and projected at 30 Mt in 2021. Beyond 2021, another 5 GW of coal-fired power plants are planned, mostly operating on domestic lignite. Moreover, the government has plans to turn Thar lignite into liquid and gas fuels and fertilisers, although some challenges would need to be overcome.
 
In Bangladesh, the mine-mouth 525 MW Bakapuria power plant was the only coal power plant until, in May 2020, the first unit of two 660 MW USC blocks at Payra power station started operations. This is the first power plant in Bangladesh to depend on imported coal which will increase demand by 3-4 Mt per year. So far, demand has been dominated by brick kilns, which account for 80% of Bangladesh’s coal consumption.
 
Plans for expansion of coal-fired generation in Bangladesh have been shelved: most of the more than 30 GW of proposed coal capacity will not be built reflecting lower gas prices, increasing anti-coal pressure and lower expectations for power demand growth. Nevertheless, the 1 320 MW SC Maitree plant (Rampal), expected to be operational by 2021, the 1 200 MW USC Matarbari, the 307 MW Barishal power plant and the 1320 MW Patuakhali power plant, all under construction, would increase coal consumption to over 30 Mt per year before 2025. The future of Bangladesh’s other coal plants is very uncertain.
Sourcce: COAL 2020, IEA


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