Summit Oil and Shipping (Soscl) said it has signed a memorandum of understanding with Commonwealth LNG to collaborate in the supply of LNG from the US to Asia, including Bangladesh.
Under the memorandum, Soscl said it would potentially buy 1 million tonnes per year (mtpa) of LNG for a term of up to 20 years from Commonwealth’s 8.4 mtpa facility currently under development in Cameron, Louisiana.
SOSCL is part of the Summit Group, Bangladesh’s largest infrastructure conglomerate.
The firm’s associated companies within Summit Group have about 3 GW of gas-to-power electricity in operation or development within the Indian subcontinent.
Moreover, they also operate the FSRU-based Summit LNG terminal 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,” Farid Khan, vice chairman of Summit Group, said.
“We look forward to having Commonwealth LNG as a partner that can deliver US-sourced LNG, providing diversification of supply for Bangladesh and the pricing stability associated with Henry Hub,” he said.
“Commonwealth’s focus on producing the lowest-cost liquefaction in the US remains important in a highly competitive global market,” CEO Paul Varello, said.
“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,” he said.
Commonwealth has previously pushed the final investment decision on its proposed liquefaction plant in Cameron for about one year.
Also, the firm said it had expected the project to achieve FID in the first quarter of 2022, while the first cargo could leave the plant in the second quarter of 2025.
