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Beximco plans to establish first LPG fired power plant in Bangladesh

Beximco Group, the private conglomerate of Bangladesh, is planning to set up its first Liquefied Petroleum Gas (LPG)-based power plant in the country.

On February 26, Rafiqul Islam, executive director (Corporate Affairs) of Beximco, has sent a letter to the chairman of Bangladesh Power Development Board (BPDB) requesting arrange a meeting in this regard.

However, the capacity of the power plant and its location were not mentioned in the letter.

The aim of the move is to expand energy supply sources and ease pressure on the country`s decreasing natural gas resources.

Moreover, it is expected that the move will add further momentum to the growth of LPG demand due to its use as fuel in the automotive sector and the suspension of pipeline gas supply to households and commercial consumers.

The consumption of LPG is increasing in Bangladesh day by day. In 2016, LPG consumption was around 300,000 tonne which was 200,000 tonne in 2015.

According to the estimation of Bangladesh government, the actual unconstrained demand could be around 500,000 tonne per year as kerosene and wood are being used as alternatives to LPG due to lack of its availability.

LPG, which is largely known as cooking fuel in Bangladesh, has turned to a great utility in using as a fuel in power generation.

Moreover, LPG has become a great competitor to Liquefied Natural Gas (LNG) and even coal due to its good heating value, cleaner generation and lower cost.

Beximco Group is planning to introduce a new type of fuel LPG in power generation with the help of its technical partner USA-based General Electric (GE).

The GE is successfully operating several power plants run by LPG in America, Africa and Asia.

On October 2016, Beximco signed a deal with two Chinese companies to produce 2,180MW power of which 1,980MW from coal-fired power plant and 200MW from solar power plant.

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