Bangladesh’s Summit Group spearheads major LNG project
Bangladesh’s 170 million population requires a lot of energy.
Bangladesh’s Summit Group has signed its first liquefied natural gas (LNG) supply agreement, signalling the company’s positive trajectory in 2024, according to Muhammed Aziz Khan, founder and chairman of the Summit Group.
"In 2023, we secured two significant agreements to supply 1.5 million tons of LNG annually to Bangladesh and an FSRU (Floating Storage Regasification Unit) with a capacity of 170,000 cubic metres," he shared.
Khan also pointed out the challenges faced globally, including the shift of focus from climate issues and empowering the poor due to escalating conflicts worldwide.
Addressing the unique energy demands of Bangladesh, which boasts a population of 170 million, Khan underscored the necessity of ramping up electricity and energy provision.
"Bangladesh has one of the lowest per capita energy consumptions. Enhancing this, while ensuring affordability, remains a key focus for us," he stated.
Khan outlined the company's ambitious projects. "The onshore terminal project is progressing well. We expect to receive awards by 2024, and hopefully, by 2027-28, the onshore terminal will be operational," he elaborated.
The project, in collaboration with JIRA and Sumitomo, is a significant step in empowering Bangladesh's energy sector. Additionally, he mentioned the anticipated arrival of their FSRU in 2026, which is expected to have a capacity of 600 million cubic feet per day and a storage capacity of 170,000 cubic metres.
Discussing the crucial role of LNG in Bangladesh's energy transition, Khan emphasised its significance as a transitional fuel. "Natural gas has been, and continues to be, a primary source of energy for Bangladesh," he said.
The existing gas pipeline and infrastructure, along with the populace's familiarity with managing natural gas, position LNG as an opportune solution amidst the country's rapid growth and escalating energy needs.
"LNG will play a major part as we transition towards more climate-friendly energy sources like solar, offshore wind, cross-border electricity, or nuclear," Khan added.