Summit Group to develop $500m LNG terminal in offshore Bangladesh

Summit Group has secured a contract from Petrobangla to build a floating liquefied natural gas terminal at offshore Moheshkhali Island within Chittagong division of Bangladesh.

Under the contract, Summit Group's Summit LNG Terminal Company will set-up floating facilities within 18 months after the entering a final agreement.

The floating terminals will have a daily supply capacity of 500 million cubic feet of natural gas, reported Thedailystar.net.

For every 1,000ft³ of natural gas, the LNG will cost the Bangladeshi Government $0.45.

Summit Group will transfer the terminals to Petrobangla after operating them for 15 years.

The project will be developed in collaboration with US-based GE, which will serve as an equity investment partner. Facilities will also contain floating storage and re-gasification unit, reported Thefinancialexpress-bd.com.

Summit Group chairman Muhammed Aziz Khan was quoted by Thedailystar.net as saying: “We want to ensure constant supply of primary energy for the country by implementing this project.”

Khan claimed that LNG is not only cost-effective, but also a more eco-friendly alternative.

Last month, Petrobangla signed an agreement with India-based Petronet to construct a LNG re-gasification terminal on Kutubdia Island, as well as a pipeline. This project is estimated to be $950m.

The country is exploring new ventures as it is facing shortage in gas supply. The current supply is around 2,700Mcfd, while it requires 3,300Mcfd.