Asia's LNG Addiction Sparks Energy Costs Crisis Amid Supply Disruptions
A recent report by the Institute for Energy Economics and Financial Analysis (IEEFA) highlights the significant impact of liquefied natural gas (LNG) supply disruptions on energy costs in Asia. Bangladesh, which spent $880m on emergency cargoes after deliveries were disrupted during the Middle East conflict, is cited as a prime example.
The report notes that Bangladesh was forced to purchase 11 emergency spot cargoes at prices almost three times typical levels due to the conflict. In contrast, Pakistan has reduced its reliance on imported fossil fuels by importing over 50 gigawatts (GW) of solar panels in the past five years.
IEEFA states that falling renewable technology costs are strengthening the economic case for reducing reliance on imported fossil fuels. Solar photovoltaic module capital costs have declined 65% over six years, while battery storage and wind turbine capital costs fell 44% and 42%, respectively.