Summit Power International has signed a memorandum of understanding with Japan's Mitsubishi and Diamond Gas International to develop a $3 billion LNG-to-power project at Matarbari, Moheskhali, in Bangladesh, which includes an 11 million mt/year terminal, the company said in a statement Tuesday.
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Under the agreement, the parties agreed to develop an integrated LNG onshore receiving terminal with a regasification capacity of up to 1.5 Bcf/d, two units of 1,200 MW gas turbine combined cycle power projects, relevant high voltage transmission lines and the imported LNG.
"This MOU will help SPI support Bangladesh's fast-growing energy, power and technology needs. It will be a strategic fit for SPI to leverage Mitsubishi's LNG, and LNG-to-Power expertise as well as understanding of Moheskhali and Bangladesh's power needs," SPI chairman Muhammed Aziz Khan said.
"The two groups are well positioned to uniquely benefit from opportunities arising from the Bangladesh Government's move to raise LNG imports to meet the country's domestic natural gas shortfall and expand the country's power generation capacity," Khan added.
Summit Power International is the largest independent power producer in Bangladesh, representing approximately 21% of the country's private power market in 2017.
Diamond Gas International is a wholly-owned subsidiary of Mitsubishi Corporation established in 1990 to handle the company's LNG trading business.