Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) has cancelled its long-term liquefied natural gas (LNG) supply contract with Summit Group, almost a year after scrapping the company's second floating storage and regasification unit (FSRU) project.
Bangladesh had signed four long-term LNG supply deals effective from 2026 – with Qatar Energy Trading LLC, Oman’s OQ Trading Ltd, US-based Excelerate Gas Marketing Limited Partnership, and Summit Oil and Shipping Company Ltd.
Summit Oil and Shipping Company Limited (SOSCL), a subsidiary of Summit Group, was notified about the cancellation on 1 September this year, according to official sources.
Under a 15-year Sale and Purchase Agreement (SPA) signed on 30 March 2024, SOSCL was to supply 1.5 million tonnes per annum (mtpa) of LNG, about 24 cargoes annually, at $10.428 per million British thermal units (mmbtu) starting in October 2026.
Earlier, on 7 October last year, Petrobangla cancelled the second Summit FSRU deal, citing failure to deposit the performance bond within 90 days as stipulated in the agreement.
Petrobangla said the supply deal was tied directly to the commissioning of Summit's second FSRU, for which the Terminal Usage Agreement (TUA) and Implementation Agreement (IA) were cancelled last year over failure to deposit the performance bond.
"Since the TUA and IA with the second Summit FSRU have been cancelled, Article 3.3 of the LNG Sale and Purchase Agreement is no longer binding," it stated.
