• Monday, Sep 27, 2021
  • Last Update : 12:58 am

Summit, Commonwealth LNG sign deal to supply fuel to Bangladesh

  • Published at 05:36 pm August 2nd, 2021
Summit's LNG FSRU arrives ahead of schedule
File photo of Summit LNG, the company's Floating Storage and Regasification Unit (FSRU) ship Courtesy

The scope of the MoU includes SOSCL potentially contracting for 1 million tonnes per year (MTPA) of LNG offtake for a term of up to 20 years

Summit Oil and Shipping Co Ltd (SOSCL) has signed a memorandum of understanding (MoU) with Commonwealth LNG to collaborate in the supply of liquefied natural gas (LNG) to Asia, including Bangladesh.

SOSCL, a private sector importer and supplier of fuel to Bangladesh, is part of the Summit Group — the largest infrastructure conglomerate of the country.

According to Summit Group, the signing ceremony took place recently at the Bangabandhu Auditorium of the Embassy of Bangladesh in Washington, DC in the presence of Dr Tawfiq-e-Elahi Chowdhury, energy advisor to the prime minister.


Also Read - Bangladesh encourages US companies to invest in offshore oil, gas explorations


Speaking on the occasion, Dr Tawfiq-e-Elahi Chowdhury noted the importance of ensuring access to energy sources to support the economic development related activities in Bangladesh.

He welcomed the signing of the MoU between SOSCL and Commonwealth LNG as an important step towards further expanding the existing energy cooperation between Bangladesh and the US.

The scope of the MoU includes SOSCL potentially contracting for 1 million tonnes per year (MTPA) of LNG offtake for a term of up to 20 years from Commonwealth’s 8.4 MTPA facility currently under development in Cameron, Louisiana.

SOSCL’s associated companies within Summit Group have approximately 3GW of gas-to-power electricity in operation or development within the Indian subcontinent, and operate a 500 mmcf/d Floating Storage and Regasification Unit (FSRU) and LNG terminal under Summit LNG Terminal Co (Pvt) Ltd (SLNG) in Moheshkhali of Cox’s Bazar.

“We are proud of what this step means towards securing this major source of clean energy for the growing economy of Bangladesh,” said Farid Khan, vice chairman of Summit Group.

“We look forward to having Commonwealth LNG as a partner that can deliver US-sourced LNG, providing diversification of supply for Bangladesh and the pricing stability associated with Henry Hub”, he added. 


Also Read - Bashundhara’s mega oil refinery will reduce import, cost of gas


From Commonwealth LNG, President and CEO Paul Varello said the MoU is evidence of just how aligned the parties are in achieving their shared objectives.

“Commonwealth’s focus on producing the lowest-cost liquefaction in the US remains important in a highly competitive global market,” said Varello.

“This becomes even more critical for a rapidly emerging economy such as Bangladesh where the need for additional energy is critical for sustaining its economic growth. Summit has recognized that need and Commonwealth LNG looks forward to partnering in these efforts,” he said.

Commonwealth is implementing an accelerated construction schedule that will allow the project to be built in three years using a predominantly modular approach with major components being fabricated offsite, said Summit Group.

55
Facebook 54
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail