Mitsubishi Corporation has agreed to acquire 25% interest in Summit LNG Terminal. It will also develop a liquefied natural gas (LNG) receiving terminal that uses a floating storage and regasification unit (FSRU) in Bangladesh.
Under the project, Summit LNG will install an FSRU 6 kilometre off the coast of the island of Moheshkali in the Cox’s Bazar district 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, says a press release.
The planned LNG import volume is approximately 3.5 million tonnes per annum.
Bangladesh, with its expanding population, and an economic growth rate of more than 6% per annum, is also seeing a rapid increase in electricity demand.
While gas-based generation accounts for approximately 60% of total generation, domestic natural gas production is starting to decline.
Bangladesh 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.