DHAKA/SINGAPORE: Bangladesh has ended its agreement with domestic conglomerate Summit Group to construct a second floating liquefied natural gas (LNG) terminal in the country, the company announced. Summit received the termination notice on Monday evening, as stated in a communication to Reuters.
This LNG import terminal would have been the country’s third and was projected to be operational by the second quarter of 2026. Summit currently operates one of Bangladesh’s existing LNG terminals.
The cancellation follows a government committee’s recommendation earlier this month to void the contract, which was signed in March. Critics have raised concerns about the transparency of the process, which was intended to ensure a reliable power supply for the nation.
In its statement, Summit emphasized its strong track record in developing long-term infrastructure projects in Bangladesh with responsibility and transparency. “We believe this decision is unjustified and will seek a review,” the company said.
An official from state-owned energy company Petrobangla, who wished to remain anonymous due to media restrictions, confirmed the termination of the Summit deal. This cancellation will also affect a 15-year LNG supply agreement linked to the terminal’s construction, according to the Petrobangla representative.
Muhammad Fouzul Kabir Khan, the government’s adviser on power and energy, did not respond immediately when contacted for comment on the cancellation.
The interim government of Bangladesh, led by Nobel Peace Prize laureate Muhammad Yunus—who assumed power after protests led to the resignation of Prime Minister Sheikh Hasina—has expressed concerns over the financial implications of agreements like the one with Summit.
In a related move, Petrobangla has begun issuing tenders for purchasing spot LNG cargoes from the international market through an open tender process, rather than through private tenders.
