Summit and Commonwealth LNG sign MOU for 1 MTPA of LNG offtake for Bangladesh

Summit and Commonwealth LNG sign MOU for 1 MTPA of LNG offtake for Bangladesh

Summit and Commonwealth LNG sign MOU for 1 MTPA of LNG offtake for Bangladesh

Photo caption:  Summit and Commonwealth signed a MOU to collaborate in the supply of LNG in the presence of Dr. Tawfiq-e-Elahi Chowdhury, BB, the Honourable Energy Advisor to the Prime Minister of Bangladesh, at the Bangladesh Embassy in Washington, D.C.

Summit Oil and Shipping Co. Ltd. (“SOSCL”), the first and largest private sector importer and supplier of fuel oil to Bangladesh, announced recently that it has signed a Memorandum of Understanding (MOU) with Commonwealth LNG to collaborate in the supply of LNG to Asia, including Bangladesh. SOSCL is part of the Summit Group, Bangladesh’s largest infrastructure conglomerate.

The signing ceremony took place at the Bangabandhu Auditorium of the Embassy of Bangladesh in Washington, D.C. in the presence of Dr. Tawfiq-e-Elahi Chowdhury, BB, the Honourable Energy Advisor to the Prime Minister on Power, Energy and Mineral Resources. 

Speaking on the occasion, Dr. Tawfiq-e-Elahi Chowdhury underscored the importance of ensuring access to energy sources to support the economic development related activities in Bangladesh. The Honourable Advisor welcomed the signing of the MOU between SOSCL and Commonwealth LNG as an important step towards further expanding the existing energy cooperation between Bangladesh and the United States. 

The scope of the MOU includes SOSCL potentially contracting for 1 million tonnes per year (MTPA) of LNG offtake, for a term of up to 20 years, from Commonwealth’s 8.4 MTPA facility currently under development in Cameron, Louisiana. 

SOSCL’s associated companies within Summit Group have approximately 3 GW of gas-to-power electricity in operation or development within the Indian subcontinent, and operate a 500 mmcf/d Floating Storage and Regasification Unit (FSRU) and LNG terminal under Summit LNG Terminal Co (Pvt) Ltd (“SLNG”) in Moheshkhali, Cox’s Bazar, Bangladesh.

“We’re proud of what this step means towards securing this major source of clean energy for the growing economy of Bangladesh,” said Farid Khan, Vice Chairman of Summit Group. “We look forward to having Commonwealth LNG as a partner that can deliver U.S.-sourced LNG, providing diversification of supply for Bangladesh and the pricing stability associated with Henry Hub.”

From Commonwealth LNG’s perspective, President and CEO Paul Varello said the MOU is evidence of just how aligned the parties are in achieving their shared objectives. 

“Commonwealth’s focus on producing the lowest-cost liquefaction in the U.S. remains important in a highly competitive global market,” said Varello. “This becomes even more critical for a rapidly emerging economy such as Bangladesh where the need for additional energy is critical for sustaining its economic growth. Summit has recognized that need and Commonwealth LNG looks forward to partnering in these efforts.”

Commonwealth is implementing an accelerated construction schedule that will allow the project to be built in three years using a predominantly modular approach with major components being fabricated offsite.  

– – –

Media Coverage

English Newspaper

The Daily Star, August 02, 2021
The Dhaka Tribune, August 01, 2021
The Financial Express, August 02, 2021
The Business Standard, August 03, 2021
The Daily Sun, August 01, 2021
Business Insider Bangladesh, August 02, 2021
Energy & Power Magazine, August 02, 2021
Daily Observer, August 03, 2021
The Daily New Nation, August 03, 2021
Our Time, August 03, 2021
The Business Post, August 03, 2021

Bengali Newspaper
Prothom Alo, August 04, 2021
Bonik Barta, August 02, 2021
The Daily Inqilab, August 02, 2021
Daily Naya Diganta, August 03, 2021
Bangla Tribune, August 01, 2021
Jugantor, August 03, 2021
Business Insider (Bangla), August 02, 2021
Energy Bangla, August 02, 2021
Desh Rupantor, August 02, 2021
Ittefaq, August 03, 2021
Bhorer Kagoj, August 03, 2021
Dainik Amader Shomoy, August 03, 2021

Online Portals
Bloomberg, August 02, 2021
Hellenic Shipping News, August 02, 2021
LNG Industry, August 02, 2021
Nasdaq, August 02, 2021
GNL Global, August 02, 2021
Yahoo! Finance, August 02, 2021
MSN, August 02, 2021
Offshore Energy, August 03, 2021
LNG Journal, August 04, 2021
Natiral Gas Intelligence, August 03, 2021
Energy Intelligence, August 03, 2021
MFAME, August 03, 2021
Opera News, August 03, 2021
JOGMEC, August 03, 2021
Commonwealth, August 03, 2021
LNG Prime, August 03, 2021
PFI, August 25, 2021
bdnews24.com, August 02, 2021
Bangla.bdnews24.com, August 02, 2021

News agencies
BSS, August 02, 2021
UNB, August 02, 2021
Business Wire, August 02, 2021

TV Coverages

Channel i, August 02, 2021
Ekattor TV, August 04, 2021

Social Media Posts

Commonwealth LNG – Official LinkedIn page, August 02, 2021
Summit Group – Official YouTube Channel, August 02, 2021
SOSCL – Official Facebook Page, August 02, 2021
SPI – Official Facebook Page, August 02, 2021
Muhammed Aziz Khan – Official Facebook Page, August 02, 2021