Summit Group has applied to execute force majeure against a halt in the operation of its LNG (liquefied natural gas) terminal, according to sources.
Summit LNG Terminal is preparing to leave the mooring facility in the Bay of Bengal as it needs an overhaul to fix the damage caused during cyclone Remal that made landfall in late May.
Force majeure is a common contractual clause that relieves both parties from liability or obligation when an extraordinary event or circumstance beyond their control, such as war, strike, riot, crime, epidemic or sudden legal change, prevents one or both parties from fulfilling their obligations.
Summit has applied to the state-run Petrobangla to execute the 'force majeure' provision under the terms of use (ToU) agreement inked between the companies, a senior Petrobangla official told the FE on Tuesday.
The floating storage and regasification unit (FSRU) of Summit is expected to return in late July after carrying out essential repair, according to him.
