JERA Co., Inc., a Japanese energy company, has signed a Memorandum of Understanding (MOU) with Summit Corporation Limited, a subsidiary of Summit Power International Limited in Bangladesh.
The two companies will collaborate on the development of liquefied natural gas (LNG) supply, storage, and regasification. The MOU was signed by Toshiro Kudama, CEO of JERA Asia, and Ayesha Aziz Khan, Director of Summit Corporation, in the presence of Bangladesh Prime Minister Sheikh Hasina and other officials at the “Trade & Investment Opportunities between Bangladesh and Japan” summit in Tokyo.
Summit Power, a power generation company under Bangladesh’s infrastructure conglomerate Summit Group, owns a floating storage and regasification unit (FSRU) in offshore Moheshkhali, Bangladesh, with a daily regasification capacity of 500 million cubic feet.
Since acquiring 22% of Summit Power’s outstanding shares in October 2019, JERA has been working to improve Summit Power’s corporate value through efficient construction and operation of power generation facilities and decarbonization opportunities. In April 2022, JERA signed another MOU with Summit Power to develop a decarbonization roadmap.
Given the increasing demand for gas and the decline in domestic gas production, Bangladesh needs a stable LNG supply. The MOU suggests that JERA and Summit will collaborate on LNG storage and regasification, as well as the long-term supply of LNG to Bangladesh.
As the world transitions towards a carbon-neutral future, LNG will play a vital role as a source of transition energy in Asia, particularly in Bangladesh. JERA hopes to strengthen its cooperative relationship with Summit Power through this MOU and contribute to reliable energy supply and the strengthening of the LNG value chain in Bangladesh by participating in the LNG supply, storage, and regasification.
