Govt scraps LNG terminal installation deal with Summit

The government on Monday cancelled a deal with Summit Group for setting up the country’s third floating LNG terminal, amid widespread criticisms that the Awami League government inked the unusually costly uncontested agreement to benefit vested parties.

Petrobangla cancelled the Summit deal, signed in March during the Awami League regime, on orders from the power and energy ministry.

Summit won the deal under a “special law” without having to contest with a single alternative bidder.

The conglomerate said it would appeal against cancellation of the deal, terming the move was “unjustified.”

Summit currently operates a floating LNG terminal in Moheshkhali of Cox’s Bazar, and the March deal would have allowed it to have a second terminal in the country and enjoy powers to monopolise domestic LNG supplies.

The country’s other terminal is operated by US-based Excelerate Company, also in Moheshkhali.