Summit Group’s LNG terminal is likely to go into operation by the end of this month, according to officials.
Its Floating Storage and Re-gasification Unit (FSRU) which is known as LNG terminal arrived in the country on Apr 21 and it remained moored at six km off the island of Maheshkhali in Cox’s Bazar, the business group said in a media statement.
Summit has brought the FSRU, carrying LNG (Liquefied Natural Gas) from Qatar, under a 15-year contract with Excerelate Energy of US.
“Our FSRU is ready for operation and it will start operation within a week if the weather is found to be suitable,” Summit Group official Mohsena Hassan told UNB.
The FSRU will send out re-gasified liquefied natural gas (RLNG) via subsea pipeline connected to the national grid. Summit LNG is able to re-gasify 500 million cubic feet of LNG daily (mmcfd), according to a media statement.
The news agency quoted Summit Group Chairman Muhammed Aziz Khan saying that they were working towards achieving power and energy sufficiency in Bangladesh under the bold leadership of the government.
“We’re pioneering adaptation of cutting-edge technology for most economical, efficient and sustainable energy solutions to enable graduation to a developed country. Summit is promised bound to provide least-cost environment-friendly solutions,” he told UNB.
This will be the second FSRU operation in the country after the inception of LNG import. The first FSRU was set up by US-based Excerelate Energy which came into operation in August last and now it is re-gasifying about 350 million cubic feet of gas per day (mmcfd).
State-owned Rupantarita Prakritik Gas Company Limited (RPGCL), a subsidiary of the Petrobangla, has been importing the LNG from Qatar and re-gasifying it through the FSRU of Excerelate Energy at a specific charge.
Similarly, Summit’s LNG terminal will re-gasify the RPGCL-imported LNG at a specific charge and supply it to the national gas grid, said the Petrobangla officials.
The Summit’s FSRU will be operated by Summit LNG Terminal Co Ltd (SLNG), a subsidiary of Summit Power International (SPI) and a company of Summit – Mitsubishi consortium.
Mitsubishi, the Japanese trading giant, acquired 25 percent of SLNG in August 2018 and is represented in the Board of Directors of the company.
Summit Group said the floating LNG terminal facility comprising of storage and re-gasification unit is part of SPI’s USD 1 billion investment programme by 2020 to deliver power and gas to Bangladesh.