Summit Group gets approval for setting up another LNG terminal in Cox's Bazar

Local Summit Group has received in principal the approval of the Cabinet Committee on Economic Affairs to establish the third liquefied natural gas (LNG) terminal in the country.

The cabinet body in a meeting, with Finance Minister AHM Mostafa Kamal, gave the approval under which Summit Oil and Shipping Co Ltd., a concern of Summit Group, will set up the terminal at Moheshkhali in Cox's Bazar.
The re-gasification capacity of the proposed terminal would be 500 million cubic feet LNG per day (mmcfd), said additional cabinet secretary Sayed Mahbub Khan at virtual briefing after the meeting, reports UNB.

State owned Petrobangla submitted the proposal, he said.

The approval would help the Petrobangla to start the establishment process of the terminal, he said.

He could not give any detail about the project's cost and it's implementation time.

The country already has two LNG terminals — one was set up by Excelerate Energy of the United Sates at Moheshkhali of Cox's Bazar with 500mmcfd capacity while the other one was established with the same capacity by the Summit Group in the same area.

The finance minister also presided over a meeting of the Cabinet Committee on Government Purchase (CCGP) and approved proposals including the procurement of LNG from spot market, fertiliser, drugs, sugar and soyabean oil.

Excelerate Energy LP of the United States will supply 33.60 lakh MMBtu LNG with per unit costing $13.9.

State-owned Essential Drugs Company Limited will supply the drugs worth around Tk 249.99 crore through the direct purchase method and will be utilized by some 14,200 community clinics.

Bangladesh Chemical Industries Corporation will purchase 30,000 tonnes of bagged granular urea from Karnaphuli Fertiliser Company Limited with per tonne costing $319.87.

It will also purchase same amount of bulk granular urea from the United Arab Emirates with per tonne costing $319.87.

Same amount of bagged granular urea will be imported by BCIC from Qatar with per tonne costing $303.33.

Mahbub Khan said two proposals were submitted at the table.

One of them was to purchase 12,500 tonnes of sugar by the Trading Corporation of Bangladesh from a Singapore -based supplier through an open tender with per tonne costing $477.9.

The other was purchase of 80 lakh tonnes of soyabean oil to be supplied by City Edible Oil Limited with per liter cost Tk 161.37.