Summit LNG Terminal II Co Ltd (“SLNG II”), a unit of Summit Community, has urged the Government of Bangladesh to reverse its decision to terminate the third Floating Storage and Regasification Unit (“FSRU”) mission in the country.
SLNG II said it had got a check out from the Bangladesh Oil, Gasoline and Mineral Company (“Petrobangla”) on 7 October notifying the termination of the mission positioned at Moheshkhali in Cox’s Bazar, reads a press release issued this present day (9 October).
The Moheshkhali terminal (“2nd FSRU”) in southeast Bangladesh is the second floating gas terminal mission undertaken by Summit Community with a planned regasification capability of 600 million celebrated cubic toes per day.
The statement reads that, SLNG II is owned by Summit Energy International Tiny, the ideal non-public sector investor in energy in Bangladesh with a confirmed tune document of making prolonged-interval of time infrastructure initiatives in a to blame and transparent plot.
“Our investments absorb helped to catalyse foreign order funding into Bangladesh. We respectfully bustle the Government of Bangladesh to uphold the sanctity of contracts and to be obvious that patrons’ rights are protected and handled moderately and equitably,” SPIL said in the clicking release.
Concerning the mission, SLNG II gave about a clarifications:
In dead 2020, the Government of Bangladesh made a strategic decision to transition from coal-fired energy generation to natural gas, a cleaner energy source. The initiative used to be also geared in the direction of boosting gas supply to be obvious energy security and enhance industrial development. Summit Community submitted a proposal on 11 October 2021, to put into effect a FSRU on a Fabricate, Devour, Aim, and Transfer (BOOT) basis. The proposal used to be celebrated by the Cupboard Committee on Economic Affairs on 14 June 2023.
The approval adopted two years of intensive negotiations and consultations with world regulation companies to take care of the contractual and technical challenges.
Summit, in collaboration with Petrobangla and Rupantarita Prakritik Gasoline Firm Tiny (“RPGCL”), finalised the Terminal Utilize Agreement (“TUA”) and Implementation Agreement (“IA”) on 12 October 2023. These had been legally vetted and celebrated by the Cupboard Committee on 12 December 2023.
SLNG II signed the TUA and IA on 30 March 2024 with Petrobangla and Government of Bangladesh (“GoB”) for the 2nd FSRU. On the same day SLNG II also signed a prolonged-interval of time Sale and Have Agreement (“SPA”) to create 1.5 million tonnes of liquefied natural gas (“LNG”) to Petrobangla, starting in October 2026.
To fulfil the initial conditions precedent (“CPs”) of the agreements signed on 30 March 2024, SLNG II has to this level dedicated investments of roughly $15 million to put into effect the 2nd FSRU, reads the clicking release.
The termination check out got on 7 October 2024 used to be issued on the premise that the agreements signed on 30 March 2024 had no longer become efficient as a performance bond used to be no longer submitted within 90 days as stipulated, i.e. on 28 June 2024. SLNG II said that as that date fell on a Friday (no longer a banking day in Bangladesh), the performance bond used to be delivered on the subsequent that which that you simply might perchance additionally imagine working day, with acknowledgement by Petrobangla.
SLNG II’s lawyers absorb confirmed that SLNG II had no longer breached any CPs of the agreements of 30 March 2024. Despite the indisputable fact that any CP used to be delayed, Petrobangla failed to disclose SLNG II within the agreed 30-day window and had attributable to this fact deemed the CP as authorized.
The statement reads, “SLNG II is owned by Summit Energy International Tiny (“SPIL”), the ideal non-public sector investor in energy in Bangladesh with a confirmed tune document of making prolonged-interval of time infrastructure initiatives in a to blame and transparent plot. SPIL has stated that our investments absorb helped to catalyse foreign order funding (“FDI”) into Bangladesh.
“We respectfully bustle the Government of Bangladesh to uphold the sanctity of contracts and to be obvious that patrons’ rights are protected and handled moderately and equitably,” SPIL said.
