Govt cancels deal with Summit Group for second FSRU

The government today cancelled its deal with Summit Group on the second Floating Storage and Regasification Unit (FSRU).

The deal has been terminated upon the instruction of the power, energy and mineral resources ministry, Petrobangla Chairman Zanendra Nath Sarker told The Daily Star.

In contrast, Summit Group said in a statement that it has received a termination notice of the FSRU's terminal use agreement.

"We believe this is unjustified and will appeal for review," it said, adding that the group has a proven track record of developing long-term infrastructure projects in Bangladesh in a responsible and transparent manner.

On March 30 this year, Petrobangla and Summit signed a terminal use agreement and another agreement for the implementation of its second FSRU.

On the same day, they also signed sale and purchase agreement to supply 1.5 million tonnes of liquified natural gas (LNG) per year for a 15-year period, starting from October 2026.