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Mitsubishi Corp. to acquires 25% interest in Bangladesh LNG receiving terminal

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Tanks and Terminals,


Mitsubishi Corp. has agreed to acquire a 25% interest in Summit LNG Terminal Co. Ltd. (SLNG) and to develop a LNG receiving terminal that uses a FSRU in Bangladesh. With the acquisition, 75% of SLNG will be held by Summit Corp. Ltd. (Summit) and 25% by MC.

Under the project, SLNG will install an FSRU 6 km off the coast of the island of Moheshkali in the Cox Bazar District of Chittagong Division in Bangladesh, where it will receive and regasify LNG procured by Petrobangla, the national oil and energy company. Construction of the terminal commenced at the end of 2017 and commercial operations are expected to start in March 2019. The planned LNG import volume is approximately 3.5 million tpy.

Bangladesh, with its expanding population, and an economic growth rate of more than 6% per annum, is also seeing a rapid increase in electricity demand. While gas-based generation accounts for approximately 60% of total generation, domestic natural gas production is starting to decline. The country is therefore promoting LNG imports as part of its national energy policy. Bangladesh will start importing LNG in 2018, with a targeted import volume of 17 million tpy in 2030.

LNG receiving terminals that use FSRUs can be installed at lower cost and constructed within a shorter period than conventional onshore receiving terminals, and hence are an effective means to build LNG receiving capacity in emerging countries. The demand for such terminals is expected to grow.

MC has been providing a stable supply of LNG to the market while at the same time developing its power, energy and infrastructure business globally, particularly in Asia where there is rapidly increasing energy demand.

In addition to this project, Summit and MC have agreed to jointly pursue other projects across the LNG value chain in Bangladesh, from LNG supply to power generation. On 13 March 2018, MC and Summit signed a MoU to pursue jointly an integrated LNG-to-Power development consisting of onshore LNG receiving terminal with a regasification capacity of up to 1500 million ft3/d, associated LNG supply and construction of 2400 MW gas-powered thermal power plant.

Read the article online at: https://www.tanksterminals.com/terminals/20082018/mitsubishi-corp-to-acquires-25-interest-in-bangladesh-lng-receiving-terminal/

 

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