ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Need for Rigorous Analysis

Questionable Economics of LNG-based Power Generation

In recent years, liquefied natural gas (LNG) has become the preferred option for power generation. This paper unravels the process of this shift away from coal-based power generation and makes an economic comparison of LNG-based generation with its competing options. As a sensitivity analysis based on cost variations of components revealed, in most cases, coal-based generation turned out to be a cheaper option. Though experts have spoken up for LNG's environmental friendly nature, questions still remain even as India's extensive coal reserves remain poorly exploited.



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