Summit gets approval to set up its 2nd LNG import terminal in Bangladesh
Summit Oil and Shipping, a subsidiary of Summit Group, has received approval from the Bangladesh government to establish its second and country’s third floating LNG import terminal in Cox's Bazar, according to United News of Bangladesh.
The state-owned energy company, Petrobangla, submitted the proposal to provide re-gasification services.
Summit Oil and Shipping in a separate statement said that an estimated investment of $500mn will be required for storage of approximately 170,000 m3 of LNG, as well as port services and management of the vessel in the deep sea, including ship-to-ship transfer capabilities for LNG.
The proposed terminal will be situated about 5 km off Moheshkhali island, and a 5 km subsea pipeline with a diameter of 24 inches will be laid at a depth of 5 m into the sea bed. The FSRU at the terminal is expected to supply at least 600 million ft3/day of gas.
Currently, Bangladesh has two floating LNG terminals, each with a capacity of 500 million ft3/day, located in Maheshkhali. One of these terminals is operated by Summit, while the other is managed by Excelerate Energy.
Bangladesh has been facing a gas shortage that has affected power generation and industrial activities. The depreciation of the local currency against the US dollar has made it challenging for the government to pay for LNG imports. In response to high global gas prices, the government had to ration gas supplies last year.
Recently, Petrobangla signed an LNG purchase agreement with QatarEnergy Trading, the LNG trading arm of QatarEnergy.