In a strong response to the recent termination notice of the Terminal Use Agreement (TUA) for its second Floating Storage and Regasification Unit (FSRU) project, Summit Group has announced plans to appeal the decision, asserting that the cancellation is unjustified and detrimental to Bangladesh’s energy infrastructure.
On October 7, 2024, Summit received a termination notice from the Bangladesh Oil, Gas and Mineral Corporation (Petrobangla), citing non-compliance with key conditions precedent outlined in the TUA and Implementation Agreement (IA) signed on March 30, 2024. This agreement, essential for the supply of 1.5 million tonnes of LNG per year over a 15-year period beginning in October 2026, was viewed by Summit as a significant step toward enhancing Bangladesh’s energy capacity.
Summit Group has emphasized its longstanding commitment to responsible and transparent development of infrastructure projects in the country. The company argues that the allegations of non-compliance, particularly regarding the Performance Bond, are unfounded and warrant further examination. “We believe that the termination of the TUA and IA is unjustified and undermines the progress we have made in advancing Bangladesh’s energy sector,” a Summit spokesperson stated.
The cancellation notice refers to a letter dated October 3, 2024, from the Energy and Mineral Resources Division, which highlighted concerns over the effectiveness of the signed agreements due to the alleged failure to meet critical conditions. In particular, it mentioned the non-compliance with the Performance Bond as a key factor leading to the termination.
Summit Group is rallying support from stakeholders and the public, urging a reconsideration of the decision that could significantly impact the future of energy supply in Bangladesh. The company is prepared to take all necessary steps to protect its interests and ensure that the project moves forward.
As the situation develops, Summit Group remains hopeful for a resolution that aligns with the best interests of Bangladesh’s energy needs. The company calls for dialogue and collaboration to address the issues raised and to reaffirm its commitment to contributing to the nation’s energy security.
