Japan Mitsubishi Corp to acquire 25 percent stake in Bangladesh LNG terminal

Reuters

Published Aug 17, 2018 06:03

Japan Mitsubishi Corp to acquire 25 percent stake in Bangladesh LNG terminal

By Jessica Jaganathan

SINGAPORE (Reuters) - Japan's Mitsubishi Corp (T:8058) on Friday said it has agreed to acquire 25 percent of Bangladesh's Summit Liquefied Natural Gas (LNG) terminal and plans to help develop an offshore receiving site in the South Asian country.

The other 75 percent of the Summit LNG terminal will remain with Summit Corp.

Summit LNG's project plans call for a floating storage and regasification unit (FSRU) to be installed off the coast of Moheshkali, where it will receive and regasify LNG procured by Petrobangla, the country's national oil and gas company.

Construction of the terminal has already begun, with commercial operation expected to start in March 2019. The planned LNG import volumes are about 3.5 million tonnes per annum, Mitsubishi said.

Bangladesh's economic growth rose by 7.28 percent in the financial year through mid-2017, and its population is expected to climb to over 185 million people by 2030, boosting demand for electricity and LNG for power generation.

Summit and Mitsubishi have agreed to jointly pursue other LNG projects in Bangladesh, said the Japanese company, from the supply of the super-chilled fuel to power generation.