Summit Power International signed a memorandum of understanding (MOU) with Japan’s Mitsubishi Corp and subsidiary Diamond Gas International to develop a $3 billion LNG-to-power project in Bangladesh.
Under the MoU, Summit and Mitsubishi agreed to develop an integrated liquefied natural gas (LNG) onshore receiving terminal with regasification capacity of up to 1,500 million cubic feet per day (mmcfd) at Matarbari in the Bay of Bengal, and two 1,200-megawatt (MW) gas turbine combined cycle power generators. The generator project also includes the relevant high voltage transmission lines and the import of LNG to the sites.
Muhammed Aziz Khan, chairman of Summit Power International, said “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.” Khan added that Bangladesh will require about 7 million tonnes of LNG by 2022 and similar volumes of coal by 2024. About 30 percent of the more than 160 million people in Bangladesh are estimated to lack access to electricity.