Bangladeshi firm pens MoU for US LNG
Bangladeshi private firm Summit Oil & Shipping has signed a memorandum of understanding (MoU) with US LNG exporter Commonwealth LNG for the supply of LNG to Asia, including Bangladesh.
The MoU covers 1mn metric tons/year of LNG supply over 20 years from the 8.4mn mt/yr liquefaction project that Commonwealth is currently developing in Cameron, Louisiana, Summit Oil reported on August 2. Commonwealth partnered with commodities trader Gunvor to invite bids for offtake from the plant in January, enabling customers to book future term supply at volumes, pricing and durations of their choosing.
Summit Oil is the largest private sector importer and supplier of fuel oil to Bangladesh. It is a subsidiary of Summit Group, which has some 3 GW of gas-to-power electricity in operation or development within the Indian subcontinent. It also operates a 500mn ft3/day floating storage and regasification unit in Moheshkhali in Bangladesh.
"We look forward to having Commonwealth LNG as a partner that can deliver US-sourced LNG, providing diversification of supply for Bangladesh and the pricing stability associated with Henry Hub," Farid Khan, vice chairman of Summit Group, commented.
Commonwealth said back in January that it would offer LNG from its planned Cameron facility under tolling, free on board, or delivered at place (DAP) offtake contracts to meet customer preferences. The company is looking to take a final investment decision on the project in the first quarter of 2022 and launch exports in the second quarter of 2025. Gunvor has committed to taking 3mn mt/yr of supply from the facility.