The Summit LNG Terminal Company (SLNG) has sought around $22 million in bills from the Petrobangla for the last three months though it has been inoperative since late May, a senior Petrobangla official told the FE.
It previously sought to apply force majeure provision of the contract following a halt to operations of its FSRU due to the devastation of cyclone Remal from May 30, he said.
"We've got a letter from the Summit this week about the payment claim," said the official.
The Petrobangla has not decided yet on making payment, but said the issue could be resolved either through discussion or through court.
The official, preferring anonymity, said that the Petrobangla has also been suffering due to the non-operation of the Summit's FSRU, which has been hindering the country's gas-guzzling sectors, including power generation, industrial production and fertiliser output.
"Our primary focus at this moment is working tirelessly to restore the SLNG operations as quickly as possible," managing director of the Summit Corporation Faisal Khan told the FE on Saturday.
"Summit LNG Terminal Co. (SLNG) has globally recognised international shareholders; JERA (16.5%), Mitsubishi (25%), and Summit (58.5%). Our operations are further strengthened by international financing from Japan's SMBC, ensuring we adhere to the highest standards of corporate governance," he said.
"At Summit, all our companies are administered by experienced professionals who ensure that invoices are submitted in strict accordance with contractual agreements. Our customers also have the right to dispute any invoice, as outlined in these contracts," Khan added.
The Summit Corporation looks after the Summit Group's LNG infrastructure and energy trading apart from power generation issues.
The Summit previously also had sought payment from the Petrobangla when its FSRU was out of service for three months from November 2021 due to a ruptured mooring line in the Bay of Bengal, said a senior official of state-run Rupantarita Prakritik Gas Company Ltd (RPGCL).
But, the Petrobangla did not make payment back then, he added.
"This is ridiculous," said Professor M Tamim, who was special assistant to the country's chief adviser during the previous 2007-2008 caretaker government and looked into energy issues.
The Summit's FSRU was not ready to operate over the past three months, for which the entire country has been suffering, he said, questioning the Summit's claim.
The SLNG had attained contract to build, own, operate and transfer the FSRU under the special law named Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 (Amended 2021) bypassing competitive tender.
Bangladesh's new interim government, however, intends to review all projects, including that of Summit's FSRU, according to a decision taken recently by the newly appointed interim government's adviser for power and energy and road transport and bridges Muhammad Fouzul Kabir Khan, S&P Global Platts reported previously.
Energy expert Tamim also opined for amending necessary terms in the existing deals to safeguard the country's interest.
Regarding the FSRU operation, Summit Centre said on August 15, "Assuming favourable weather and sea conditions, Summit anticipates completing the repositioning and reconnection of the DTM plug by the end of August 2024 and ship-to-ship transfer ready in September 2024."
In July 2024, MacGregor and CAN System, both Norwegian-based world renowned maritime companies and Shelf Subsea, a Singapore-based company, were all appointed by the Summit LNG Terminal Co Ltd to safely moor Summit's FSRU by rectifying the mishap of offset disconnectable turret mooring, or DTM, on the subsea landing pad, it said.
Due to adverse weather conditions at sea and almost zero underwater visibility, the damage identified by the internationally licenced subsea diving team has posed significant obstacles to rectify, said the Summit statement.
To reconnect the FSRU, the DTM plug has to be repositioned on the centre of the landing pad located on the seafloor, it said.
Although the anchor handling tug (AHT), coral was equipped to perform this repositioning, unfortunately, it was unable to exert the force required to reposition the DTM, the Summit said.
Bangladesh has stopped inviting tenders to purchase spot LNG cargo from first week of July due to the halt to the Summit FSRU operations, said a senior official of the state-run RPGCL.
The South Asian country is unlikely to float any fresh tender to purchase spot LNG until the Summit's FSRU comes online, he said.
Bangladesh had to cancel four spot LNG cargoes for June deliveries following initial accident of the Summit's FSRU.
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