Summit Power and Mitsubishi to develop $3bn LNG power project in Bangladesh

Summit Power International’s (SPI) subsidiary Summit has signed a memorandum of understanding (MOU) with Mitsubishi and its subsidiary Diamond Gas International to develop an integrated liquefied natural gas (LNG) power project at Matarbari in Bangladesh.

At an estimated cost of $3bn, the MoU will see the parties develop an integrated LNG-receiving terminal with a regasification capacity of up to 1,500 million cubic feet per day (mmcfd).

The MoU also includes the importation of LNG and the development of two 1,200MW gas turbine combined-cycle power projects.

SPI chairman Muhammed Aziz Khan said: “This MOU will help SPI support 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 understand Moheskhali and Bangladesh’s power needs.

“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.”

The company has a share of 21% in Bangladesh’s private power market.

In an interview given to Reuters in February, Khan said that the company would invest in projects in an effort to meet the growing energy demand in the country.

According to Khan, there is demand for about seven million tonnes of LNG by 2022.