Bangladesh’s Summit Power to develop US$3 billion LNG-to-power project with Japanese firms

Bangladesh’s Summit Power International said on the 13^th March that it has signed a Memorandum of Understanding with Japan’s Mitsubishi Corporation and subsidiary Diamond Gas International to develop a US$3 billion LNG-to-power project.

Under the MoU, subsidiary Summit Corporation, group company Summit Holdings and the Japanese firms agreed to develop an integrated liquefied natural gas onshore receiving terminal with regasification capacity of up to 1,500 million cubic feet per day (mmcfd) at Matarbari, Moheskhali in the Bay of Bengal.

‘This MoU will help Summit Power International support Bangladesh’s fast-growing energy, power and technology needs,’ said Muhammed Aziz Khan, the chairman of Summit Power International.

‘The two groups are well-positioned to uniquely benefit from opportunities arising from the Bangladesh government’s move to raise LNG imports to meet the country’s domestic natural gas shortfall and expand the country’s power generation capacity.’

Summit Power is the largest independent power producer in Bangladesh, representing about 21 percent of the country’s private power market last year.

Summit Power is set to be the first Bangladeshi firm to list in the Singapore Exchange (SGX) by April, as it seeks to raise funds to invest in assets across Asia.

With up to 30 percent of the over 160 million people in Bangladesh lacking access to electricity, Summit hopes to invest in projects to meet that expected increase in demand, Mr Khan had said in February.

Bangladesh will require about 7 million tonnes of LNG by 2022 and similar volumes of coal by 2024, Mr Khan had said.

Diamond Gas International is a wholly-owned LNG sales subsidiary that Mitsubishi Corporation established in Singapore.

Source: Energy-pedia