Bangladesh Approves Summit Group's FSRU Proposal

The government of Bangladesh January 18 green-lighted Summit Group proposal to build a floating LNG terminal at Moheshkhali Island, offshore from Cox’s Bazaar, near the industrial Chittagong region, according to UNB News. Bangladesh state owned energy company Petrobangla January 4 signed an initial contract with Summit Group.

Summit LNG Terminal Company, a subsidiary of Summit Group, would develop the project in 18 months after signing the final contract later this year. The terminal is expected to feed close to 500mn ft³/d of natural gas into the system. According to reports, Petrobangla will pay Summit $0.45/'000 ft³ of gas.

Cabinet Economic Affairs Committee also approved the plan to import LNG from Qatari RasGas on government-to-government agreement basis. The Daily Sun had earlier reported that Bangladesh is likely to procure 3.75mn metric tons of LNG at an estimated cost of $2.28bn from Qatar state-owned firm by a direct procurement method.

Bangladesh is facing a gas supply shortage of 700mn ft³/d.

Shardul Sharma