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.

(WASHINGTON, D.C.) August 2, 2021, Monday: 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.  

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About Commonwealth LNG

Commonwealth LNG is an 8.4 MTPA liquefied natural gas (LNG) export terminal project located on the Calcasieu River at the Gulf of Mexico near Cameron, Louisiana. The project’s leadership team is committed to building a world-class LNG facility by staying relentlessly focused on managing risk and lowering capital cost.

Website: www.CommonwealthLNG.com

Linkedin: https://www.linkedin.com/company/commonwealth-lng/

About Summit Oil and Shipping Company Limited 

Incorporated in 1998, Summit Oil & Shipping Co. Ltd. (“SOSCL”) is a leading private sector company in Bangladesh engaged in shipping, trading, importing, storing and supplying of fuel oil to the nation’s power generation sector. 

Website: www.SOSCL.net

Facebook: https://www.facebook.com/SummitOilShipping

Media Inquiries

Commonwealth LNG
Lyle Hanna
Director of Communications
Ph: 346-352-4436
Email: lhanna@teamcpl.com

Summit Oil & Shipping Co Ltd (SOSCL)
Mohsena Hassan
Head of Public Relations & Media
Whatsapp/Ph: +880 1713 081 905
Email: mohsena.hassan@summit-center.com