Mitsubishi Corporation agrees to acquire 25% interest in LNG Terminal in Bangladesh

Mitsubishi Corporation has agreed to acquire a 25% interest in Summit LNG Terminal Co (Pvt) Limited (“SLNG”) and to develop a Liquefied Natural Gas (LNG) receiving terminal that uses a Floating Storage and Regasification Unit (FSRU) in Bangladesh. Following the acquisition, the remaining 75% of SLNG will be held by Summit Corporation Limited .

Under the project, SLNG will install an FSRU 6km off the coast of the island of Moheshkali in the Cox’s Bazar district of Chattagram 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 Tons Per Annum (MTPA).

Bangladesh is currently promoting LNG imports as part of its National Energy Policy to meet rapidly increasing energy demand and decreasing domestic natural gas production. Bangladesh will start importing LNG in 2018, with a targeted import volume of 17 MTPA in 2030.

LNG receiving terminals that use FSRUs can be installed at a 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.