Summit Power inks pact with Mitsubishi for integrated LNG terminal, power project in Bangladesh

SINGAPORE - Singapore-based Summit Power International (SPI) and Mitsubishi Corporation have signed a memorandum of understanding (MOU) to develop an LNG-to-power project, which is expected to cost up to US$3 billion, in Matarbari, Bangladesh.

Under the MOU, the parties will develop an integrated liquefied natural gas (LNG) terminal with a regasification capacity of up to 1,500 million cubic ft per day, two units of 1,200 megawatt gas turbine combined cycle power projects as well as the relevant high voltage transmission lines.

SPI is said to be seeking a listing on the Singapore Exchange (SGX) by April, which would likely make it the first company with operations in Bangladesh to be floated on the SGX, Reuters reported in February.

The signing of the MOU was witnessed by Prime Minister Sheikh Hasina of Bangladesh and Minister for Trade and Industry (Trade) Lim Hng Kiang at the Bangladesh-Singapore Business Forum 2018. The MOU was signed by SPI's subsidiary Summit Corporation, Summit Holdings, Mitsubishi and its unit Diamond Gas International.

Muhammed Aziz Khan, chairman of SPI, said: "This MOU will help SPI support Bangladesh's fast-growing energy, power and technology needs. The two groups are well-positioned to uniquely benefit from opportunities arising from the Bangladesh government's move to raise LNG imports to meet the country's domestic natural gas shortfall and expand the country's power generation capacity."