Summit Power International, an independent power producer said that it will invest $1bn in power generation and LNG supply projects in Bangladesh in the next three years.
Through the investment, the Summit Group subsidiary will develop a gas-to-power generation facility and an offshore liquefied natural gas (LNG) import terminal.
As part of it, Summit Power will complete the Meghnaghat II natural gas-fired combined cycle power plant which will grow the company’s portfolio capacity past the 3GW mark.
IFC, a member of the World Bank Group has agreed to be the lead arranger for financing to develop the Meghnaghat II power plant.
Summit has inked a deal to charter a floating storage and regasification unit (FSRU) from with floating LNG specialist Excelerate Energy which will provide LNG storage and regasification services.
The company through its subsidiary, Summit LNG Terminal Company (SLTC) has signed a 15-year FSRU Time Charter Party deal with Excelerate Energy for the supply of gas for the projects.
Summit Power International chairman Aziz Khan said: “The Summit brand has grown from strength to strength over the past decade and today, our name is synonymous with “infrastructure for development”.
“We are excited to begin working with Excelerate for the first time. As the partner of choice for global players in the region, we endeavor to become the leading provider of energy solutions in Asia and deliver sustainable long-term value to all our stakeholders.”
Summit has also entered into a memorandum of understanding (MoU) with GE to secure $50m in equity from the American firm. The Singapore incorporated power producer intends to use the funding to develop power projects in Bangladesh.
GE South Asia president & CEO Banmali Agrawala said: “The MoU is a step towards furthering GE’s strategic partnership with the Summit Group in the region.
“We will continue to evaluate collaborations that provide comprehensive energy solutions to Bangladesh, including in the form of technology, services, and financing.”
Image: Members from Summit, Excelerate Energy, GE, and IFC at the signing ceremony in Singapore. Photo: courtesy of Excelerate Energy. L. P.