The government has granted preliminary approval to a short-term LNG supply proposal from Gunvor Singapore Private Limited, a company based in Singapore, under the Rapid Expansion of Supply of Electricity and Energy (Special Provisions) Act, 2010 (Amendment-2021).
This decision was reached during a meeting of the Cabinet Committee on Economic Affairs held on Wednesday (March 27) at the Secretariat, chaired by Finance Minister Abul Hasan Mahmud Ali.
Following the meeting, Mahmudul Hossain Khan, Secretary of Coordination and Reform at the Cabinet Department, announced that Gunvor Singapore Private Limited
has been granted preliminary approval, valid for two years, to process LNG supply proposals under the amended Rapid Expansion of Supply of Electricity and Energy Act. Once the preliminary approval is secured, the proposal will be forwarded to the Purchase Committee for further assessment and determination of costs.
In addition, an agreement has been reached with Summit Oil and Shipping Company Limited (SOSCL) to establish the country's third FSRU with a regasification capacity of 600 MMcf at Maheshkhali in Cox's Bazar district, in accordance with the amended Rapid Expansion of Supply of Electricity and Energy Act, 2010 (Amendment 2021). The contract for this project was awarded to Summit LNG Terminal Co. Ltd., formerly known as SOSCL.
Secretary Khan clarified that Summit LNG Terminal Co. Ltd. is a subsidiary of Summit Oil and Shipping Company Limited, and only the company name has been changed. The Committee was apprised of the signing of the Terminal Use Agreement (TUA) and an Implementation Agreement (IA) related to this project.