WASHINGTON: Summit Oil and Shipping Company Limited signed a Memorandum of Understanding (MoU) with Commonwealth LNG to collaborate in the supply of LNG to Asia including Bangladesh.
Summit Oil is the first and the largest private sector importer and supplier of fuel oil to Bangladesh.
Prime Minister’s Energy Adviser Dr. Tawfiq-e-Elahi Chowdhury attended the signing ceremony.
Speaking on the occasion, he underscored the importance of ensuring access to energy sources to support the economic development in Bangladesh.
Dr. Chowdhury welcomed the MoU signing as an important step towards further expanding the energy cooperation between Bangladesh and the United States.
As per the MoU, Summit Oil may contract for 1 million tonnes per year (MTPA) of LNG offtake for a term of up to 20 years from the Commonwealth’s 8.4 MTPA facility currently under development in Cameron, Louisiana.
Summit Oil’s associated companies within Summit Group have approximately 3 GW of gas-to-power electricity in operation or development within the Indian subcontinent.
“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.”
From Commonwealth LNG’s perspective, President and CEO Paul Varello said, “The MoU is an evidence of just how aligned the parties are in achieving their shared objectives.”
“Commonwealth’s focus on producing the lowest-cost liquefaction in the U.S. remains important in a highly competitive global market,” said Varello.
“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. Summit has recognized that need and Commonwealth LNG looks forward to partnering in these efforts,” the CEO said.
Commonwealth is implementing an accelerated construction schedule that will allow the project to be built in three years using a predominantly modular approach with major components being fabricated offsite.