[Bangladesh] FSRU Summit LNG

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Excelerate’s FSRU “Summit LNG” Flowing Gas into Bangladesh

MAY 1, 2019



DHAKA, BANGLADESH – The floating storage and regasification unit (FSRU) Summit LNG has begun operations at Summit LNG Terminal located offshore Moheshkhali Island in the Bay of Bengal. The FSRU successfully completed commissioning of the liquified natural gas (LNG) terminal, owned by Summit LNG Terminal Co Ltd (Summit), on April 29, 2019. The terminal has a send-out capacity of 500 million standard cubic feet per day (MMscf/d) of natural gas.

In August 2017, Summit entered into a 15-year charter agreement with Excelerate for the FSRU Summit LNG. In addition to providing the FSRU, Excelerate acted as the Owner’s Engineer for Summit in regard to the fixed infrastructure components of the terminal, which included a subsea plug, mooring system, and subsea pipeline.

“The successful completion of the Summit LNG Terminal represents a significant positive change to Bangladesh’s energy supply – helping bolster local industry while benefitting the citizens of the country,” stated Excelerate’s Managing Director Steven Kobos. “We are pleased to have partnered with Summit on this very important project and are confident our experience and expertise in FSRUs will ensure an efficient and reliable service for Bangladesh for the years to come.”

Founder Chairman of Summit Group Muhammed Aziz Khan remarked, “Summit is most pleased to receive the opportunity to provide much-needed RLNG (regasified liquified natural gas) to Bangladesh’s national gas grid. Excelerate‘s in-depth understanding and leadership in the FSRU market has contributed immensely to the implementation of this project. With this additional 500 MMscf/d to current 3,200 MMscf/d, Bangladesh will be able to provide necessary primary energy to Bangladesh. This natural gas will provide huge impetus to growth and development of Bangladesh. Summit will continue its endeavor to provide low cost environmentally friendly energy solutions to Bangladesh.”

In August 2018, Excelerate commissioned its Moheshkhali Floating LNG (MLNG) terminal – Bangladesh’s first LNG import facility. Since beginning operations, MLNG has successfully imported 27 cargoes of LNG and delivered in excess of 70 million MMBtus of natural gas into the Bangladeshi market, which represents an increase in gas supply of over 10% during this period.

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IFC and Excelerate Energy Secure Financing for Bangladesh’s First LNG Project

JULY 11, 2017

Dhaka, Bangladesh – IFC, a member of the World Bank Group, and Excelerate Energy Bangladesh Limited (Excelerate) are co-developing the Moheshkhali Floating LNG project – Bangladesh’s first liquefied natural gas (LNG) import terminal. The project will be located offshore Moheshkhali Island in the Bay of Bengal with a project cost of $179.5 million. IFC and Excelerate today announced securing the debt financing for the project to help expand access to clean energy in Bangladesh. The equity for the project had been tied up earlier with IFC coming in with a contribution of $10.8 million and Excelerate’s equity amount of $43.1 million.



As lead arranger for the project, IFC helped arrange the debt financing package of $125.7 million for the LNG project including IFC’s loan of $32.8 million from its own account and the balance from CDC Group, DEG, FMO, and JICA. The funding will support the timely construction and installation of the fixed infrastructure required for the project.

Bangladesh’s first LNG import terminal will enable Petrobangla, the state-owned energy company, to increase natural gas supply in the country by up to 20 percent, sufficient to support up to 3,000 MW of power generation capacity. The construction of the terminal will commence in the fourth quarter of 2017 and is expected to be in service by mid-2018.

Honorable Advisor to the Prime Minister of Bangladesh Dr. Tawiq-E-Elahi Chowdhury presided over the signing.

“Our partnership with IFC has been essential to the development of this project,” stated Excelerate’s Chief Financial Officer Nick Bedford. “IFC has demonstrated its commitment to bringing new energy to Bangladesh with the execution of these agreements. Excelerate takes great pride in helping bring sustainable energy solutions to countries with high energy demand, and we expect this project to have a great impact on the wider Bangladeshi economy.”

The terminal is the first fully integrated turnkey floating terminal solution whereby all services will be provided under a single contract by a single provider – Excelerate. The concession agreements for the project can serve as a template for other LNG projects in the country.

“IFC is committed to a sustained effort towards partnering with Bangladesh in bringing reliable and affordable clean energy to all,” said IFC Regional Industry Head, Infrastructure and Natural Resources, Asia Pacific Hyun-Chan Cho. “Addressing the issue of depleting gas supplies is critical for the country. We hope this first LNG import facility in Bangladesh will pave the way to expand support to the power sector and industry, promote growth and mitigate climate change impacts.”

The Moheshkhali Floating LNG terminal will provide the critical infrastructure required for the country to access natural gas from global markets which is especially important considering declining domestic natural gas reserves, limited hydro and wind resources, scarce land availability for large-scale solar deployment, and increasing dependence on expensive, imported liquid fuels in the country.

The terminal will include the provision of one of Excelerate’s existing floating storage and regasification units (FSRU), the installation of a subsea buoy system anchored offshore, and the employment of port service vessels during operation. The FSRU will have 138,000 cubic meters of LNG storage capacity.

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Summit Power International to Invest USD $1 Billion in Collaboration with GE and Excelerate Energy in Power Generation and LNG Supply

August 4, 2017

SINGAPORE – Summit Power International Pte. Ltd. (“Summit” or the “Group”), the Singapore incorporated power producer, today announced collaborations to develop USD$1 Billion of gas-to-power generation and an offshore liquefied natural gas (“LNG”) import terminal. IFC, a member of the World Bank Group, has been engaged as the lead arranger for financing to develop the Meghnaghat II natural gas based combined cycle power plant. Upon completion, Summit will have a total installed generating capacity of over 3,000MW. The expansion in its core market coincides with Summit’s strategy to expand across emerging markets in the South-East Asia. To enable clean, sustainable power, Summit will be chartering a floating storage and regasification unit (“FSRU”) from Excelerate Energy for LNG storage and regasification services.

GE, through GE Capital’s Energy Financial Services, and Summit have entered into a Memorandum of Understanding (MOU) for GE to potentially provide USD$50 Million of equity to Summit, to be used for the development of power projects in Bangladesh. In addition, GE Gas Power Systems will have rights to supply equipment for the power projects based on gas turbine technology and developed in the next 36 months by Summit.

To make gas available for these projects, Summit LNG Terminal Company (“SLTC”) will sign the FSRU Time Charter Party agreement for 15 years with Excelerate Energy L.P. (“Excelerate”), the floating LNG specialist. The agreement is for the provision of one of Excelerate’s existing FSRUs.

The arrangements will be formalised at a signing ceremony to be held later today at The Fullerton Hotel, Singapore in the presence of Mr. Kazi M. Aminul Islam, Executive Chairman of the Bangladesh Investment Development Authority, Mr. Abul Kalam Azad, Chief Coordinator, Sustainable Development Goals of the Government of Bangladesh, Mr. Fazle Kabir, Governor of Bangladesh Bank, Mrs Lim Hwee Hwa, former Minister, Prime Minister’s Office Singapore, Mr. Satvinder Singh, Assistant CEO of International Enterprise (IE) Singapore, and Mr. Muhammed Aziz Khan, Chairman of Summit Group.

The MoU with Summit and GE will be signed by Mr. Faisal Khan, Additional Managing Director of Summit Corporation and Mr. Banmali Agrawala, President & CEO, GE South Asia.

Mr. Tariqur Rashid, Managing Director of SLTC and Mr. Karlman Tham, General Manager of Asia of Excelerate, will sign on behalf of Summit and Excelerate respectively.

Mr. Aziz Khan, Chairman of Summit Power International said: “We are delighted to announce these significant projects valued at over US$1 billion over the next three years. The addition of these power projects is in line with our objective to grow our sustainable power capacity to empower nations and transform lives. This development is a testament to our deep long-standing relationship with GE and IFC which began some 20 years ago. 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.”

Mr. Banmali Agrawala, President & CEO, GE South Asia 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.”

IFC Head of New Business Infrastructure and Natural Resources, Asia Pacific, Mr. Lubomir Varbanov added, “We value our engagement with Summit, and have been actively supporting the group’s mission to bring sustainable long-term power solutions to Bangladesh. Our strategic relationship with Summit goes all the way back to 1997 when IFC financed Khulna, followed by Bibiyana in 2015, and more recently, in 2016, through financing from IFC’s own account and mobilizing from IFC’s Emerging Asia Fund and EMA Power. IFC remains committed to paving the way for the country to achieve energy security, and we look forward to supporting Summit to help meet this objective in the region.”

Mr. Karlman Tham, General Manager of Excelerate, said: “We are pleased to be partnering with Summit on this very important project. We are confident our experience and expertise in FSRUs will ensure an efficient and reliable project for Bangladesh for the years to come.”