Summit Corporation Ltd, a subsidiary of Summit Power International (SPI) along with Summit Holdings Limited signed a memorandum of understanding (MoU) with Japanese Mitsubishi Corporation and its subsidiary Diamond Gas International Pte Ltd on Tuesday to build a 2400 MW capacity LNG-based power plant and an onshore LNG terminal at Matarbari of Maheskhali. The projects will cost around US$3 billion.
The MoU was inked at the Bangladesh-Singapore Business Forum 2018 meeting, in Singapore which 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 Tuesday.
Under the MoU, the parties agreed to develop an integrated LNG (liquefied natural gas) onshore receiving terminal with a re-gasification capacity of up to 1,500 million cubic feet per day (mmcfd), two units of 1,200 megawatt (MW) gas turbine combined cycle power projects, necessary high voltage transmission lines, and the import of LNG.
“This MoU will help SPI support to Bangladesh’s fast-growing energy, power and technology needs. It will be a strategic fit for SPI to leverage Mitsubishi’s LNG, and LNG-to-Power expertise as well as understanding of Maheskhali 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 the 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 noted.
Summit has a long-established track record of working with world-renowned technical partners including General Electric, Wärtsilä and now Mitsubishi Corporation and Diamond Gas, Mr Khan added.
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