Govt cancels LNG terminal deal with Summit

The government has cancelled its deal with Summit Group on the second Floating Storage and Regasification Unit (FSRU).
The deal was terminated upon instruction from the power, energy, and mineral resources ministry, Petrobangla Chairman Zanendra Nath Sarker told The Daily Star yesterday.
Summit Group, in a statement, confirmed that it has received a termination notice of the FSRU’s terminal use agreement.
“We believe this is unjustified and will appeal for review,” it said, adding that the group has a proven track record of developing long-term infrastructure projects in Bangladesh in a responsible and transparent manner.
On March 30 this year, Petrobangla and Summit signed a terminal use agreement and another agreement for the implementation of its second FSRU.
On the same day, they also signed a sale and purchase agreement to supply 1.5 million tonnes of liquified natural gas (LNG) per year for a 15-year period, starting from October 2026.
Meanwhile, the Bangladesh Financial Intelligence Unit (BFIU) directed banks to freeze the accounts of Summit Group Chairman Muhammad Aziz Khan, his brothers, and other family members.
The BFIU, in a letter, instructed banks to block transactions for one month under the provisions of the money laundering prevention law.
The directive also applies to the bank accounts of the firms owned by the aforementioned individuals, freezing their transactions for the same period.
The anti-money laundering agency listed 11 individuals, including Muhammad Faruk Khan, former commerce minister, and Faisal Khan, president of the Bangladesh Independent Power Producers Association.
Summit Group, the largest private power producer in Bangladesh, is believed to have enjoyed various benefits and preferential treatment under the patronage of the previous Awami League government, which was ousted in a mass uprising in early August.
Following the fall of the Sheikh Hasina government, Summit and several other conglomerates have come under increased scrutiny from regulatory agencies, including the National Board of Revenue (NBR).
Recently, the NBR requested the Registrar of Joint Stock Companies and Firms to block share transfers by seven business houses, including Summit.
Summit also operates one of the two floating storage regasification units and supplies liquefied natural gas to the government.