Summit signs deal with Commonwealth LNG to import gas from USA
BI Report || BusinessInsider
Officials of Summit Oil and Commonwealth LNG pose for a photo after signing an agreement at Bangladesh embassy in Washington DC. Photo: Courtesy
The country’s largest private-sector fuel oil supplier Summit Oil and Shipping (SOSCL) has recently signed a memorandum of understanding (MoU) with Commonwealth LNG, to import 1 tonne of liquefied natural gas per year from the United States of America (USA) for up to 20 years.
Energy Advisor to the Prime Minister Dr Tawfiq-e-Elahi Chowdhury was present at the agreement signing event at the Bangladesh Embassy in Washington DC recently.
Tawfiq-e-Elahi Chowdhury underscored the importance of ensuring access to energy sources to support the economic development related activities in Bangladesh.
The signing of the MoU between SOSCL and Commonwealth LNG is an important step towards further expanding the existing energy cooperation between Bangladesh and the United States, he believes.
The scope of the MoU includes SOSCL potentially contracting for 1 million tonnes per year (MTPA) of LNG offtake for up to 20 years, from Commonwealth’s 8.4 MTPA facility currently under development in Cameron, Louisiana.
“We’re proud of what this step means towards securing this major source of clean energy for the growing economy of Bangladesh,” said Farid Khan, vice-chairman of Summit Group.
“We look forward to having Commonwealth LNG as a partner that can deliver US-sourced LNG, providing diversification of supply for Bangladesh and the pricing stability associated with Henry Hub,” he added.
From Commonwealth LNG’s perspective, President and CEO Paul Varello said the MoU is evidence of just how aligned the parties are in achieving their shared objectives.
“Commonwealth’s focus on producing the lowest-cost liquefaction in the U.S. remains important in a highly competitive global market,” said Varello. “This becomes even more critical for a rapidly emerging economy such as Bangladesh where the need for additional energy is critical for sustaining its economic growth. Summit has recognized that need and Commonwealth LNG looks forward to partnering in these efforts.”