Bangladesh wants Australia’s coal for new power stations
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Bangladesh is urging Australia to take advantage of an “enormous opportunity” to export coal and liquefied natural gas to the developing country, which is experiencing surging demand for the fossil fuels.
The country of about 165 million people has a slew of coal-fired power stations coming online over the next five years and will be importing about 45 million tonnes of coal by 2025, worth a predicted $4 billion to $5 billion annually.
“There is enormous opportunity for export of Australian coal and LNG to Bangladesh given Bangladesh’s sustained energy demand,” the Bangladesh high commissioner to Australia, Sufiur Rahman, said on Monday.
“If these are added to the traditional traded items, Bangladesh could emerge as a major trading partner of Australia soon.”
Mr Rahman called for a greater policy focus from the Australian government on the export opportunity and stronger private sector relationships to facilitate the trade.
According to figures provided by the Bangladeshi high commission, about 40 million tonnes of the country’s predicted demand in 2025 will be for thermal coal while 5 million will be coking coal, used in steel production.
Bangladesh currently sources the bulk of its coal from Indonesia, South Africa and India but Australia is seen as a supplier of a high-quality, efficient product.
The Bangladeshi market could present a valuable opportunity for the coal industry as exports to China falter. The Chinese government has been subjecting Australian coal to tighter import restrictions, with some analysts fearing political tensions between Beijing and Canberra are to blame.
Australia’s coal exports were worth almost $70 billion in 2018-19, with Japan, China and South Korea the major destinations.
The growing demand for coal in Bangladesh is also notable given the country is among the most vulnerable to the effects of global warming.
Natural disasters and erosion already are posing a severe threat to some communities. It is predicted that sea levels could rise more than three feet by 2100, which would submerge 20 per cent of Bangladesh’s landmass and displace more than 30 million people.
But as the country seeks to provide energy for its growing population and economy, it is aiming to build at least eight new major coal-fired power plants before 2026, with a projected output of more than 13,000 megawatts.
Bangladesh is also predicting it will need to import 25 million tonnes of LNG over the next five years. Australia’s has emerged as the world’s largest export of LNG after years of explosive growth in the sector.
Source: https://www.hellenicshippingnews.com
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