Summit Group has recently signed an initial contract with Petrobangla to set up a liquefied natural gas terminal on Moheshkhali Island in Cox’s Bazar at a cost of about USD 500M. Summit LNG Terminal Company, a unit of Summit Group, will develop the floating facilities in 18 months after signing the final contract, the company said in a recent statement.
Energy Secretary Nazimuddin Chowdhury, Petrobangla Chairman Abul Mansur Md Faizullah, Summit Group Chairman Muhammed Aziz Khan, Vice-Chairmen Md Latif Khan and Md Farid Khan and General Electric’s Infrastructure Director Peter Mackey were present at the signing of the initial agreement at Petrobangla in Dhaka.
The floating terminal will supply 500 million cubic feet of natural gas per day. The LNG will cost the government USD 0.45 per 1,000 cubic feet of natural gas. Summit will transfer the facilities to Petrobangla after operating it for 15 years. Summit will implement the project jointly with US-based GE as equity investment partner, and plans to implement the LNG terminal project with its own funds.
“We want to ensure constant supply of primary energy for the country by implementing this project,” said Aziz Khan. LNG will be the easiest, most cost-effective, environment-friendly and quickest solution to meet the primary fuel demand as the current supply of gas will start declining in 2018, he said. Khan also said the floating terminal will help Summit implement a large gas-based power plant, having a capacity of generating 600 megawatts of electricity.