Summit Corp signs MoU with Mitsubishi for $3bn LNG terminal in Cox’s Bazar

Summit Corporation, Mitsubishi Corporation and its subsidiary Diamond Gas International have signed a Memorandum of Understanding or MoU to construct an integrated LNG Terminal and power project in Bangladesh, Summit Power International or SPI has announced on its website.

Summit Power, a leading independent power producer in Bangladesh, says the project at Matarbari, Moheskhali in Cox’s Bazar is expected to cost up to $3 billion.

Prime Minister Sheikh Hasina and Singapore’s Minister for Trade and Industry Lim Hng Kiang witnessed the signing of the MoU at the Bangladesh-Singapore Business Forum 2018 on Tuesday.

Under the MOU, the parties have agreed to develop an integrated liquefied natural gas or LNG on shore receiving terminal with a regasification capacity of up to 1,500 million cubic feet per day, two units of 1,200 megawatt gas turbine combined cycle power projects, relevant high voltage transmission lines and the import of LNG.

Muhammed Aziz Khan, chairman at SPI, said: “This MoU will help SPI support Bangladesh’s fast-growing energy, power and technology needs. It will be a strategic fit for SPI to leverage Mitsubishi’s LNG, and LNG-to-Power expertise as well as understanding of Moheskhali and Bangladesh’s power needs.

“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.”

Incorporated in Singapore, Summit Power International is a leading developer, owner and operator of high-quality power projects in Bangladesh.

Having co-sponsored Bangladesh’s first independent power plant in 1997, SPI is the largest independent power producer in the country, representing approximately 21% of the private power market in 2017, says the media release.