The summit called for a reconsideration of the government's decision to cancel the order to build its second floating LNG terminal.
In a press release sent on Wednesday (January 22), Summit said, on October 7, Petrobangla informed that the project in the southeast region of Bangladesh is being cancelled. The summit then approached local and international legal consultancies and confirmed that such a decision was against the terms set out in the Terminal Use Agreement. Based on the advice of legal consultancies, the Summit Group has again urged Petrobangla and the Bangladesh government to reconsider the decision.
The previous government gave Samit the task of constructing another LNG terminal at Maheshkhali without tender. After taking office, the current government repealed the much-criticized Rapid Increase in Electricity Supply Act, 2010. At the same time verifying the work given under this Act, canceling the work which has not yet started.
Summit said, the decision to cancel the project is not only illegal, but delayed implementation of the Summit FSRU project may further destabilize the country's energy security.
Note that Summit FSRU has already invested 20 million US dollars to implement the project.
