The government on Monday (Oct 7) terminated its agreement with Summit Group to build another floating liquefied natural gas (LNG) terminal, FSRU-3 (Floating Storage and Regasification Unit), in the country.

Petrobangla cancelled the Summit deal, signed in March during the Awami League regime, on orders from the power and energy ministry.

Summit won the deal under a “special law” without contesting with a single alternative bidder.

The conglomerate said it would appeal against the cancellation of the deal, terming the move as “unjustified.”

Summit currently operates a floating LNG terminal in Moheshkhali of Cox’s Bazar, and the March deal would have allowed it to develop a second terminal (Floating Storage and Regasification Unit) in the country.

The country’s other LNG terminal is operated by US-based Excelerate Company, also in Moheshkhali.

BDST: 0944 HRS, OCT 08, 2024
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