Japan’s Mitsubishi Corporation has agreed to acquire a 25 percent interest in Summit LNG Terminal, a Summit Corporation unit, developing an FSRU-based import terminal in Bangladesh.
With the acquisition, 75 percent of Summit LNG will be held by Summit Corporation and 25 percent by Mitsubishi Corporation, the company said in its statement.
Under the project, Summit LNG will install an FSRU 6 kilometers off the coast of the island of Moheshkali in the Cox Bazar District of Chittagong Division in Bangladesh, where it will receive and regasify LNG procured by Petrobangla, the national oil and energy company.
Construction of the terminal commenced at the end of 2017 and commercial operations are expected to start in March 2019, handling the planned LNG import volume of approximately 3.5 mtpa.
Bangladesh, with its expanding population, and an economic growth rate of more than 6 percent per annum, is also seeing a rapid increase in electricity demand.
While gas-based generation accounts for approximately 60 percent of total generation, domestic natural gas production is starting to decline. The country is therefore promoting LNG imports as part of its national energy policy. Bangladesh will start importing LNG in 2018, with a targeted import volume of 17 mtpa in 2030, Mitsubishi said.
In addition to this project, Summit and Mitsubishi have agreed to jointly pursue other projects across the LNG value chain in Bangladesh.
Earlier in March, Mitsubishi and Summit signed a memorandum of understanding to pursue jointly an integrated LNG-to-power development consisting of onshore LNG receiving terminal with a regasification capacity of up to 1,500 million cubic feet per day, associated LNG supply and construction of 2,400 Megawatt gas-powered thermal power plant.