Summit Power International (SPI) has signed a memorandum of understanding (MoU) with Japan-based Mitsubishi for the development of $3bn integrated LNG terminal and power project in Bangladesh.
The MoU was signed by SPI subsidiary Summit Corporation, and group company Summit Holdings and Mitsubishi and its subsidiary Diamond Gas International at the Bangladesh-Singapore Business Forum 2018.
SPI chairman Muhammed Aziz Khan said: “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.
“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 understanding of Moheskhali and Bangladesh’s power needs.”
Pursuant to the agreement, the firms will develop an LNG onshore receiving terminal with a re-gasification capacity of up to 1,500 million cubic feet per day (mmcfd) at Matarbari, Moheskhali area in Bangladesh.
They will also build two units of 1,200MW gas turbine combined cycle power projects (total of 2,400MW), relevant high voltage transmission lines and the import of LNG.
Khan further added: “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.”
Last year, SPI has announced its intention to invest $1bn to develop $1bn of gas-to-power generation and an LNG projects over the next three years. The investment was announced in collaboration with GE and Excelerate.
Established in Singapore, SPI is a developer, owner and operator of power projects in Bangladesh. It comprises a group of businesses which focus on developing, owning and operating power generating assets.
The company claims that it is the largest independent power producer in the country, representing about 21% of the private power market in 2017.