Summit Corporation Limited, a subsidiary company of Summit Power International Limited and JERA Asia Pte Ltd a subsidiary company of JERA Co. Inc. signed a Memorandum of Understanding ("MOU") on Thursday (27 April) in the presence of Prime Minister of Bangladesh Sheikh Hasina with her entourage.
The MoU was signed by Toshiro Kudama, CEO of JERA Asia, and Ayesha Aziz Khan, director of Summit Corporation and MD and CEO of Summit Power International.
Valued around $2 billion, the objective of the MoU is to collaborate in providing cost effective and reliable long-term Liquefied Natural Gas ("LNG") and other fuels supply in addition to developing both on-shore and off-shore regasification and storage infrastructure for Bangladesh.
Toshiro Kudama, CEO of JERA Asia stated, "JERA is keen to assist Bangladesh's objective to secure a reliable energy supply and is pleased to be able to do that by building up the existing relationship with Summit. The signing of the MoU is a significant first step towards achieving the objective. JERA looks forward to further contributing to Bangladesh's reliable energy supply in collaboration with Summit."
Muhammed Aziz Khan, founder chairman of Summit Group said, "A country's energy consumption has become the main index to its affluence and development. Like the rest of the world, Bangladesh is also facing energy security concerns as a result of high interest rates, supply-chain shock and market volatility. At Summit, we are offering solutions through the development of much needed LNG storage and supply infrastructure with our partner, JERA."
As Bangladesh approaches the transition to "developing country" status in 2026, it faces global energy supply challenges.
Summit and JERA's collaboration offers Bangladesh an alternative affordable energy supply solution by bringing down the cost of importing essential fuels into Bangladesh. It also dovetails with the International Monetary Fund's (IMF) intent to reduce Bangladesh's balance of payment pressure due to import-intensive climate investments as the recipient of the Resilience and Sustainability Facility (RSF).
The prime minister's entourage included Salman F Rahman, Private Industry and Investment adviser to the prime minister, Foreign Affairs Minister Abul Kalam Abdul Momen, State Minister of ICT Zunaid Ahmed Palak, BSEC Chairman Prof Shibli Rubayat Ul Islam, and Executive Chairman of BIDA Lokman Hossain Miah.
At that time also present were Japanese Ambassador to Bangladesh Iwama Kiminori, and Chairman of JETRO Norihiko Ishiguro, as well as, Founder Chairman of Summit Group Muhammed Aziz Khan and Additional Managing Director of Summit Corporation Faisal Khan.
Summit Power is a power generation company under the umbrella of Bangladesh's leading infrastructure conglomerate Summit Group. It also owns a floating storage and regasification unit (FSRU) with a daily regasification capacity of 500 million cubic feet located in offshore Moheshkhali, Bangladesh.
Since agreeing to acquire 22% of Summit Power's outstanding shares in October 2019, JERA has been striving to enhance Summit Power's corporate value through the efficient construction and operation of power generation facilities as well as the decarbonization related opportunities. In April 2022, JERA signed an MOU with Summit Power to collaborate on the development of a decarbonization roadmap for Summit Power.