DHAKA, Aug 2, 2021 (BSS) - Summit Oil and Shipping Co. Ltd. ("SOSCL"), the first and largest private sector importer and supplier of fuel oil to Bangladesh, has signed a Memorandum of Understanding (MOU) with Commonwealth LNG to collaborate in the supply of LNG to Asia, including Bangladesh.

SOSCL is part of the Summit Group, Bangladesh's largest infrastructure conglomerate.

The signing ceremony took place at the Bangabandhu Auditorium of the Embassy of Bangladesh in Washington, D.C. in the presence of Prime Minister's Energy Advisor Dr. Tawfiq-e-Elahi Chowdhury, BB, said a Summit Group press release here today.

Speaking on the occasion, Tawfiq-e-Elahi Chowdhury underscored the importance of ensuring access to energy sources to support the economic development related activities in Bangladesh.

He welcomed the signing of the MOU between SOSCL and Commonwealth LNG as an important step towards further expanding the existing energy cooperation between Bangladesh and the United States.

The scope of the MOU includes SOSCL potentially contracting for 1 million tonnes per year (MTPA) of LNG offtake, for a term of up to 20 years, from Commonwealth's 8.4 MTPA facility currently under development in Cameron, Louisiana.

SOSCL's associated companies within Summit Group have approximately 3 GW of gas-to-power electricity in operation or development within the Indian subcontinent, and operate a 500 mmcf/d Floating Storage and Regasification Unit (FSRU) and LNG terminal under Summit LNG Terminal Co (Pvt) Ltd ("SLNG") in Moheshkhali, Cox's Bazar, Bangladesh.

"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 U.S.-sourced LNG, providing diversification of supply for Bangladesh and the pricing stability associated with Henry Hub."

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."

Commonwealth is implementing an accelerated construction schedule that will allow the project to be built in three years using a predominantly modular approach with major components being fabricated offsite, the release also said.