Bangladesh’s state owned oil, gas and mineral entity, Petrobangla, has cancelled a long term LNG supply contract with the Summit Group.
Summit Oil and Shipping Co (SOSCL), a subsidiary of Summit Group, was notified about the cancellation on 1st September this year, according to official sources.
Under a 15 year sale and purchase agreement (SPA) signed on 30th March, 2024, SOSCL was to supply 1.5 mill tonnes per annum of LNG, about 24 cargoes annually, at $10.428 per MMBtu starting in October, 2026.
On 7th October last year, Petrobangla cancelled the second Summit FSRU deal, citing failure to deposit the performance bond within 90 days, as stipulated in the agreement, an official told local media.
Petrobangla said the supply deal was tied directly to the commissioning of Summit's second FSRU, for which the terminal usage agreement (TUA) and the implementation agreement (IA) were cancelled last year over failure to deposit the performance bond.
