Summit Group considers the decision to cancel the second terminal project for liquefied natural gas (LNG) conversion in Maheshkhali to be unjust and unlawful. The company has, therefore, announced its intention to appeal against the cancellation decision.
In a statement released on Tuesday (8 October), Summit Group confirmed this development, stating that they had received notice on 7 October evening regarding the cancellation of the agreement to establish a floating LNG terminal (FSRU-3).
The statement emphasised that Summit Group has a proven track record in responsibly and transparently implementing long-term infrastructure projects in Bangladesh. The company assured that the Terminal Use Agreement (TUA) and Implementation Agreement (IA) for Summit’s second Floating Storage and Regasification Unit (FSRU) project were signed with Petrobangla and the Government of Bangladesh on 30 March 2024.
On the same day, Summit also signed a 15-year Sales and Purchase Agreement with Petrobangla for the supply of 1.5 million tonnes of LNG annually, which was scheduled to commence in October 2026.
The agreement had been signed on 30 March this year by the Awami League government under special provisions of the law, bypassing a tender process.
Known as the country’s third and Summit Group’s second LNG terminal, Summit's first FSRU is already operational in Maheshkhali.
Despite criticism and controversy, the Awami League government had proceeded with the agreement at a steep price with the company.
A letter signed by Petrobangla Secretary Ruchira Islam confirmed the cancellation of the contract, which had been executed under special legislation with Summit Group.
On 6 December 2023, the Cabinet Committee on Government Purchase approved the draft agreement for the country’s third floating LNG terminal at Maheshkhali in Cox’s Bazar.
According to the agreement, Summit Group was expected to receive a daily regasification charge of $300,000 (equivalent to Tk3 crore 31 lakh 50 thousand as per the exchange rate stated in the contract) for 15 years after the terminal's commissioning.
Over the 15-year period, Summit’s earnings from regasification charges would amount to at least Tk17,354 crore, calculated at an exchange rate of Tk110 per dollar.
Summit Group Chairman Aziz Khan, who was a relatively small-scale businessman just a few years ago, is now counted among top-tier entrepreneurs, even in places like Singapore.
Forbes’ 2024 list of billionaires features Aziz Khan as the first Bangladeshi to make the list, ranking him 2,545th with a total asset valuation of $1.1 billion, primarily stemming from energy-related ventures.
According to Forbes, Aziz Khan is currently a permanent resident of Singapore, and he had earlier secured a place as Singapore’s 41st wealthiest individual.
Aziz Khan’s close ties with the Awami League government have raised concerns, with accusations that national laws, policies, and master plans were disregarded in favour of Summit Group’s interests.
It has been reported that the Power Development Board (PDB), as well as the Power Division’s planning, underwent changes under pressure from Summit Group.
The locations and approval of power plants were not determined in the nation’s interest, but were allegedly influenced by the preferences of Aziz Khan, a close associate of Sheikh Hasina.
These developments have not only caused financial losses to the state but have also resulted in the establishment of poorly planned power plants that have become a burden for the Power Development Board, according to PDB documents.
