Mitsubishi to Buy Stake in Bangladesh LNG Terminal

Japanese Mitsubishi Corporation (MC) has agreed to acquire a 25% stake in Summit LNG Terminal (SLNG) and to develop a liquefied natural gas (LNG) receiving terminal that uses a floating storage and regasification unit (FSRU) in Bangladesh.

With the acquisition, 75% of SLNG will be held by Summit Corporation and 25% by MC.

Under the project, SLNG will install an FSRU 6km off the coast of the island of Moheshkali in the Cox Bazar District of Chittagong Division in Bangladesh, where it will receive and regasify LNG procured by Petrobangla.

The construction of the terminal commenced at the end of 2017 and commercial operations are expected to start in March 2019. The planned LNG import volume is approximately 3.5 MTPA, according to MC.

Bangladesh is promoting LNG imports as part of its national energy policy. The country will start importing LNG in 2018, with a targeted import volume of 17 MTPA in 2030.

As explained, LNG receiving terminals that use FSRUs can be installed at lower cost and constructed within a shorter period than conventional onshore receiving terminals and hence are an effective means to build LNG receiving capacity in emerging countries. The demand for such terminals is expected to grow.

In addition to this project, Summit and MC have agreed to jointly pursue other projects across the LNG value chain in Bangladesh, from LNG supply to power generation.

Earlier this year, the duo inked a memorandum of understanding (MOU) to jointly pursue an integrated LNG-to-power development consisting of onshore LNG receiving terminal with a regasification capacity of up to 1,500 million cubic feet per day, associated LNG supply and construction of 2,400 Megawatt gas-powered thermal power plant.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jul 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

World Gas Series: Morocco Summit

Bringing together key players in the gas value chain in Morocco, the World Gas Series:

read more >

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

Shipping Transformation Asia

Shipping Transformation Asia will provide a platform for future-focused discussion in the shipping,…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >