Japanese Mitsubishi Corporation (MC) has agreed to acquire a 25% stake in Summit LNG Terminal (SLNG) and to develop a liquefied natural gas (LNG) receiving terminal that uses a floating storage and regasification unit (FSRU) in Bangladesh.
With the acquisition, 75% of SLNG will be held by Summit Corporation and 25% by MC.
Under the project, SLNG will install an FSRU 6km 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.
Mitsubishi Corporation to acquire 25% interest in Summit LNG Terminal in Bangladesh. https://t.co/BnVf05uLaY pic.twitter.com/zfx1riBAdS
— Summit Power Intl (@summitpowerintl) August 18, 2018
The construction of the terminal commenced at the end of 2017 and commercial operations are expected to start in March 2019. The planned LNG import volume is approximately 3.5 MTPA, according to MC.
Bangladesh is promoting LNG imports as part of its national energy policy. The country will start importing LNG in 2018, with a targeted import volume of 17 MTPA in 2030.
As explained, LNG receiving terminals that use FSRUs can be installed at lower cost and constructed within a shorter period than conventional onshore receiving terminals and hence are an effective means to build LNG receiving capacity in emerging countries. The demand for such terminals is expected to grow.
In addition to this project, Summit and MC have agreed to jointly pursue other projects across the LNG value chain in Bangladesh, from LNG supply to power generation.
Earlier this year, the duo inked a memorandum of understanding (MOU) to jointly pursue 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.