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    Mitsubishi Takes 25% in Bangladesh LNG Terminal

Summary

The Japanese firm has agreed to take a 25% interest in Summit's Bangladesh LNG import terminal project - which will be the country's second such terminal.

by: Shardul Sharma, Mark Smedley

Posted in:

Natural Gas & LNG News, Asia/Oceania, Infrastructure, Liquefied Natural Gas (LNG), News By Country, Bangladesh, Japan

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Mitsubishi Takes 25% in Bangladesh LNG Terminal

Japan's Mitsubishi Corp announced August 17 it has agreed to acquire a 25% interest in a Bangladesh LNG import terminal project being developed by local Summit Corp.
 
The Japanese conglomerate will take a quarter-stake in Summit LNG Terminal (SLNG), while Summit itself will retain 75%. It will be based on a Floating Storage and Regasification Unit (FSRU) installed 6km off the coast of the island of Moheshkali in the Cox's Bazar district of the Chittagong region of Bangladesh, where it will receive and regasify LNG procured by state owned Petrobangla.
 
Construction of the terminal commenced at the end of 2017 and commercial operations are expected to start in March 2019.  Its planned LNG import capacity is 3.5mn metric tons/yr (0.5bn ft3/d). 

The announcement of Mitsubishi buying stake in SLNG comes after Summit signed a memorandum of understanding with Mitsubishi and the latter's subsidiary Diamond Gas International to develop a $3bn gas-to-power project in Bangladesh, consisting of an LNG receiving terminal with a regasification capacity of up to 1.5bn ft3/d, associated LNG supply and construction of 2,400 MW gas-fired power plant. That MoU  in March was followed up with signing of another MoU in July under which Summit, GE and Mitsubishi will be investing in equity and technology in the power plant.

Bangladesh is seeing a rapid increase in electricity demand. While gas-based generation accounts for roughly 60% of total generation, domestic natural gas production is starting to decline. The country is therefore promoting LNG imports as part of its national energy policy.  

Bangladesh started importing LNG last week at its first FSRU-based terminal; the country is targeting annual imports of 17mn metric tons in 2030. 

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