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Summit, Mitsubishi sign MoU to build $3bn LNG-to-power project in Bangladesh

EBR Staff Writer Published 14 March 2018

Bangladesh-based independent power producer Summit Power International (SPI) has signed a memorandum of understanding (MoU) with Japan’s Mitsubishi to develop a LNG-to-Power project at Matarbari, Moheskhali area in Bangladesh, with an investment of $3bn.

The MoU has been signed by SPI's subsidiary Summit Corporation, Summit Holdings, Mitsubishi and its unit Diamond Gas International.

Under the terms of the MOU, the firms will jointly develop an integrated LNG onshore receiving terminal which will have regasification capacity of up to 1,500 million cubic feet per day (mmcfd).

The parties have also agreed to develop two 1,200MW of gas turbine combined cycle power generators, relevant high voltage transmission lines and the import of LNG.

SPI chairman Muhammed Aziz Khan said: “Summit has a long-established track record of working with world-renowned technical partners including General Electric, Wärtsilä and now Mitsubishi Corporation and Diamond Gas.

“This MOU will help SPI support Bangladesh’s fast-growing energy, power and technology needs. It will be a strategic fit for SPI to leverage Mitsubishi’s LNG, and LNG-to-Power expertise as well as understanding of Moheskhali and Bangladesh’s power 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.”

In 2017, Summit Power announced its plan to invest $1bn in power generation and LNG supply projects in Bangladesh in the next three years.

Through the investment, the Summit Group subsidiary agreed to develop a gas-to-power generation facility and an offshore LNG import terminal. The investment was announced in collaboration with GE and Excelerate. 

Upon completion, Summit is expected to have more than 3GW of total installed generating capacity.

Incorporated in Singapore, SPI is a major developer, owner and operator of power projects in Bangladesh. The company claims to have co-sponsored Bangladesh’s first independent power plant in 1997.

Image: Officials from Summit, Mitsubishi and Diamond Gas International. Photo: courtesy of Summit Power International Pte Ltd.