Staff Reporter :
The government has canceled the Terminal Use Agreement (TUA) with Summit LNG Terminal II Co. Ltd. in Moheshkhali, Cox’s Bazar.
According to the Ministry of Power, Energy, and Mineral Resources, the agreement was canceled because the company failed to meet the condition precedent and left the implementation agreement ineffective by not providing the required performance bond.
A notification from the ministry, issued on Thursday, disclosed this decision. The cancellation followed a thorough review of the TUA with Summit Group’s LNG Terminal under the special provisions of the Quick Enhancement of Electricity and Energy Supply Act.
A committee comprising procurement experts, along with representatives from implementation, evaluation, inspection bodies, the Attorney General’s Office, and the RPGCL, reviewed the agreement details and recommended its cancellation.
Sources indicated that Summit LNG had received a concession from Petrobangla, Bangladesh’s state-owned company, in 2017 to develop a floating LNG terminal facility.
This terminal, featuring a Floating Storage and Regasification Unit (FSRU) connected to the shore via a six-kilometer subsea pipeline, was to be built, owned, operated, and transferred.
The facility was intended to supply approximately 500 million cubic feet of natural gas per day to the national grid.