Japan’s Mitsubishi Corporation on Friday said it agreed to acquire 25 per cent of Bangladesh’s Summit Liquefied Natural Gas (LNG) terminal and planned to help develop an offshore receiving site in the South Asian country.
Summit LNG’s project plans call for a floating storage and regasification unit (FSRU) to be installed off the coast of Moheshkali, where it will receive and regasify LNG procured by Petrobangla, the country’s national oil and gas company.
Construction of the terminal has already begun, with commercial operation expected to start in March 2019. The planned LNG import volumes are about 3.5 million tonnes per annum, Mitsubishi said.
Bangladesh’s economic growth rose by 7.28 per cent in the financial year through mid-2017, and its population is expected to climb to over 185 million by 2030, boosting demand for electricity and LNG for power generation.
Summit and Mitsubishi have agreed to jointly pursue other LNG projects in Bangladesh, said the Japanese company, from the supply of the super-chilled fuel to power generation.
In March this year, the two companies signed a memorandum of understanding to jointly pursue an integrated LNG-to-power development consisting of an on-shore LNG receiving terminal, associated LNG supply and construction of 2,400-megawatt gas-powered.