JERA Co., Inc. has announced the conclusion of a Memorandum of Understanding with Bangladesh's Summit Corporation, a subsidiary of Summit Power International Limited. The collaboration between the two companies will focus on the development of LNG supply, storage, regasification, and long-term supply in Bangladesh.
The MoU was signed by Toshiro Kudama, JERA Asia CEO, and Ayesha Aziz Khan, Director of Summit Corporation, and Managing Director and CEO of Summit Power, in the presence of Bangladesh's Prime Minister Sheikh Hasina at the Tokyo Summit on "Trade & Investment Opportunities between Bangladesh and Japan".
Summit Power is a power generation company under the umbrella of Bangladesh's leading infrastructure conglomerate, Summit Group. It owns a floating storage and regasification unit (FSRU) located in offshore Moheshkhali, Bangladesh, with a daily regasification capacity of 500 million cubic feet.
JERA has been working to enhance Summit Power's corporate value since agreeing to acquire 22% of Summit Power's outstanding shares in October 2019, by efficiently constructing and operating power generation facilities and exploring decarbonization opportunities. In April 2022, JERA signed another MoU with Summit Power to develop a decarbonization roadmap.
As Bangladesh's gas demand continues to increase while domestic gas production declines, the country requires the development of a stable LNG supply. The MoU demonstrates JERA and Summit's commitment to collaborate on LNG storage, regasification, and the long-term supply of LNG to Bangladesh.