Mitsubishi Corp to acquire 25% in Summit LNG terminal
August 17, 2018
Mitsubishi Corporation (MC) has agreed to acquire a 25% interest in Summit LNG Terminal and to develop a LNG receiving terminal that uses a FSRU in Bangladesh. With the acquisition, 75% of Summit LNG Terminal will be held by Summit and 25% by MC.
Under the project, Summit LNG Terminal 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, 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. The planned LNG import volume is approximately 3.5 MTPA.
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. The country is therefore promoting LNG imports as part of its national energy policy. Bangladesh started to import LNG in 2018, with a targeted import volume of 17 MTPA in 2030.
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. On 13 March 2018, MC and Summit signed a Memorandum of Understanding to pursue jointly an integrated LNG-to-Power development consisting of onshore LNG receiving terminal with a regasification capacity of up to 1,500 MMcfd, associated LNG supply and construction of 2,400 MW gas-powered thermal power plant.
Edited from Mitsubishi Corporation press release.