Summit Power, Mitsubishi sign MOU on 2,400MW LNG plant
FE Report | Wednesday, 14 March 2018
Summit Power Interna-tional (SPI) has teamed up with Japan's Mitsubishi Corp and subsidiary Diamond Gas International to set up a 2,400MW LNG-based power plant and an onshore LNG terminal at Matarbari of Moheskhali at a cost of around US$3.0 (300 crore) billion.
Summit Corporation Ltd, a subsidiary of the SPI along with Summit Holdings Limited, Japanese Mitsubishi Corporation and its subsidiary Diamond Gas International Pte Ltd signed a memorandum of understanding (MOU) on Tuesday to this end.
The MOU was inked at the Bangladesh-Singapore Business Forum 2018 held in Singapore.
The signing ceremony was witnessed by Prime Minister Sheikh Hasina. Singapore's Minister for Trade and Industry Lim Hng Kiang was also present at the function, according to a company statement released on Tuesday.
Under the MOU, the parties agreed to develop an integrated onshore LNG (liquefied natural gas) receiving terminal with a re-gasification capacity up to 1,500 million cubic feet per day (mmcfd), two units of 1,200 megawatt (MW) gas turbine combined cycle power project, necessary high voltage transmission lines and the import of LNG.
"This MOU will help SPI meet Bangladesh's fast-growing energy, power and technology needs. It will be a strategic feat for SPI to leverage Mitsubishi's LNG, and LNG-to-Power expertise as well as understand Moheskhali and Bangladesh's power needs," Summit Group chairman Muhammed Aziz Khan said on the occasion.
The two groups are well-positioned to uniquely benefit from opportunities arising from 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, he said.
Summit has a long-established track record of working with world's renowned technical partners including General Electric, Wärtsilä and now Mitsubishi Corporation and Diamond Gas, Mr Khan added.
Currently, Summit LNG Terminal Company Pvt Ltd, a subsidiary of Summit Group, is engaged to build an FSRU (floating, storage, re-gasification unit)-based LNG import terminal at Moheshkhali in the Bay of Bengal, which is scheduled to come into operation in October this year.
The government is working to start import of LNG from April through the country's first floating LNG terminal, which is being developed by the US-based Excelerate in the same area of Moheshkhali.