Summit confirms closure of 5 power plants

Staff Reporter :

Summit Power Limited, a publicly listed company in the power and energy sector, has ceased operations at five of its power plants: Jangalia, Madanganj, Ashulia, Chandina, and Madhabdi.
According to the Dhaka Stock Exchange (DSE), the closure of these plants is due to a shortage of gas, the expiry of contracts, and a lack of demand from the Power Development Board (BPDB).

Four of the plants are gas-based, while one is HFO-based. The remaining operational plants include Ashulia (gas-based, 11 MW), Madhabdi (Unit-1, gas-based, 11 MW), and Chandina (Unit-1, gas-based, 11 MW).

The contracts for Ashulia, Madhabdi, and Chandina expired on 31 August last year. Although these contracts were renewed on a ‘no electricity, no payment’ basis until 21 November 2028, production could not resume due to the ongoing gas shortage.

The contract for the Jangalia power plant expired on 24 June this year, but BPDB has yet to take any steps to resume operations or renew the contract. The Madanganj plant’s contract ended on 22 March this year, and it operated under a ‘no electricity, no payment’ agreement from 1 May. However, production was halted in mid-August after BPDB ceased sending demand.
Company Secretary Swapan Kumar Pal confirmed that five of the company’s 15 power plants are currently closed.

Summit Power was listed on the capital market in 2005. The company’s market capitalisation stands at Tk 16,872.5 crore, with 36.82 per cent of shares held by various investors (excluding entrepreneurs or directors). As of 17 December, the company’s share price was Tk 15.80.