Summit Power unit awards $135m LNG terminal contract

In addition to the latest US$100 million contract, Summit Power unit Summit LNG Terminal in August signed a time charter party agreement with floating LNG specialist Excelerate Energy to charter a floating storage regasification unit (right) that wil
In addition to the latest US$100 million contract, Summit Power unit Summit LNG Terminal in August signed a time charter party agreement with floating LNG specialist Excelerate Energy to charter a floating storage regasification unit (right) that will support gas-to-power projects in Bangladesh.PHOTO: SUMMIT POWER

A unit of Singapore-based Summit Power International has awarded a US$100 million (S$135 million) contract to a marine work contractor consortium for work on a floating liquefied natural gas storage and regasification terminal in Bangladesh.

The contract requires the consortium to design, build and install the fixed infrastructure for the floating LNG terminal.

The project in Moheskhali, within the Cox's Bazar district, is expected to be completed in early 2019.

Summit Power, Bangladesh's largest independent power producer, has said it plans to list on the Singapore Exchange early next year. This comes as its parent company, Summit Group, is aiming to raise about US$1 billion across international capital markets in the next two to four years to fund the expansion of its power business in South-east Asia.

Separately, Summit Power said last week that it has appointed three new non-executive independent directors, including two former Singapore ministers, in a move to strengthen its strategic leadership and corporate governance.

The three directors are Mr Abdullah Tarmugi, Mrs Lim Hwee Hua and Mr Tang Kin Fei, the company announced last week.

Mr Abdullah, who is also an independent director at a number of organisations, including GuocoLand, Goodhope Asia Holdings and The Islamic Bank of Asia, was Speaker of Parliament from 2002 to 2011 and an MP for Siglap from 1984 to 2011. Before that, he held various ministerial positions in the Environment, Home Affairs, and Community Development and Sports ministries.

Mrs Lim was an elected MP between 1996 and 2011, and last served as Minister in the Prime Minister's Office and Second Minister for Finance and Transport. She is also a director of Tembusu Partners, United Overseas Bank, Jardine Cycle & Carriage and BW Group.

Mr Tang, former group president and chief executive of Sembcorp Industries, is also director and deputy chairman of SIA Engineering Company.

All three new appointments took effect from Nov 1.

Correction note: In an earlier version of the story, we said that Summit LNG Terminal clinched the contract instead of awarding it. We are sorry for the error.

A version of this article appeared in the print edition of The Straits Times on November 22, 2017, with the headline 'Summit Power unit bags $135m LNG terminal contract'. Print Edition | Subscribe