Dhaka, April 20, 2017 (PR) - Summit Group, the country’s leading independent power producer with track record of spear heading infrastructure related technology transfer, has signed two agreements i.e. Terminal Use Agreement (TUA) and Implementation Agreement (IA) with Petrobangla and Energy and Mineral Resources Division (EMRD) respectively on April 20, 2017 at Petrocentre, Dhaka. Summit will build, own, operate and transfer (BOOT) Bangladesh’s second Floating Storage Regasification Unit (FSRU) with 9 km subsea pipeline off Moheshkhali, Cox’s Bazar. Summit will become the first Bangladeshi company to build FSRU in the country. MD of Summit LNG Terminal Eng ANM Tariqur Rashid and GE Global Gas to Power - Infrastructure Director Peter Mackey signed on behalf of their respective companies. On the other hand, Terminal Use Agreement (TUA) was signed by Secretary of Petrobangla Syed Ashfaquzzaman and Implementation Agreement (IA) was signed by Deputy Secretary Zanendra Nath Sarker.
Dr Tawfiq-e-Elahi Chowdhury, Energy Adviser to the Prime Minister congratulated all the stakeholders and requested to promote Bangladesh as power investment destination. Mr Nasrul Hamid, MP, Honorable State Minister - Ministry of Power Energy and Mineral Resources said, “We are happy that Summit as a Bangladeshi company is working (on FSRU). It reflects Bangladesh’s growing capability.”
Petrobangla Chairman Abul Mansur Md Faizullah ndc, Vice-Chairpersons of Summit Group Md Latif Khan, Md Farid Khan and Jafer Ummeed Khan as well as other senior officials attended the signing event.
FSRU
The proposed Floating Storage Regasification Unit (FSRU) will have LNG storage capacity of 137,000 cubic meter and maximum Re-gasified Liquefied Natural Gas (RLNG) pumping capacity of 500 MMCFD at 75-80 barg. It will be built jointly with 20% equity stake of US-based GE (and Summit 80%) within 18 months after signing of contract. It will have capacity of supplying 500 million cubic feet of natural gas per day for consumption of Bangladesh. The LNG will cost the government 45 cents per 1,000 cubic feet of natural gas.
Summit is offering competitive rate to Petrobangla in comparison to foreign competition on fixed component fee and port service charge, saving Bangladesh USD 2,500 per day for the project duration. After 15 years without any cost to Petrobangla, Summit will fully transfer the entire project facilities to government.
On completion of the project, the gas supplied by the FSRU can potentially supply to existing oil-run power plants like Meghnaghat and possibly reduce power generation cost by less than half. Prospecting, Summit has also requested permission from government to develop gas-fired power plant of at least 750 MW capacity near this FSRU.
