• 23 hours This Will Be the Answer From China On U.S. Tariffs
  • 13 hours Bad News For The Climate: Coal Burning, And Carbon Emissions, Are On The Rise Again
  • 59 mins China's Yaun/Gold backed Futures contracts
  • 1 day France Terrorist Attack?! At Least One Dead In French Supermarket Hostage-Taking
  • 1 day Twitcoin....
  • 2 days Snowden Reveals Bitcoin Transactions Being Tracked by NSA
  • 21 hours U.S. Charges, Sanctions Iranians For Global Cyber Attacks on behalf of Tehran. What about sanctions on Russia?
  • 12 hours Canada Bent On Ruining Its Oil Industry
  • 3 days Elon Musk’s $2.6 Billion Tesla Challenge
  • 21 hours The Facebook/Cambridge Analytica Scandal
  • 22 hours Surprise! Aramco Scraps International Listing Plans
  • 13 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 2 days Getting out of oil .. now
  • 2 days EU Proposes Online Turnover Tax For Big Tech Firms
  • 23 hours HAPPY RIG COUNT DAY!!
  • 2 days U.S. Judge To Question Big Oil On Climate Change
Germany’s Pivot From Russian Gas Will Be Costly

Germany’s Pivot From Russian Gas Will Be Costly

Europe’s largest natural gas consumer…

Will China’s New Oil Futures Flop?

Will China’s New Oil Futures Flop?

China’s historic oil futures contract…

Bangladesh Losing Money From Oil-Based Power Generation

As Bangladesh’s government increasingly utilizes costly imported fuel oil for generating power, state-owned Bangladesh Power Development Board is facing mounting power bills for imported fuel.
While natural gas generated more than 90 percent of Bangladesh’s power up to a couple of years ago the natural gas share in the country’s power production has slumped below 76 percent despite natural gas being Bangladesh’s cheapest source of power generation. This was due to natural gas being short supply in Bangladesh for the past several years, which compelled the government to turn to imported fuel oil as a short term solution.

The Bangladesh Power Development Board bulk electrical power sales rate is way below the electricity’s generation cost, forcing the government to heavily subsidize the Power Development Board to cover the losses, The Daily Star reported.

To alleviate the country’s chronic power shortages the Bangladesh Power Development Board is setting up several large-scale coal and natural gas fired power plants. The fuel oil fired costly power plants will subsequently be phased out by 2015, with the cheaper coal and natural plants filling the gap. Bangladesh Power Development Board chairman Alamgir Kabir said, "We believe by the end of 2014, our power generation cost will start reducing."

By. Charles Kennedy, Deputy Editor OilPrice.com

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News