Summit Power awards US$150m contract to PSA subsidiary in Bangladesh

A SUBSIDIARY of Summit Power International, which plans to list on the Singapore Exchange early this year, has awarded a 15-year contract for support vessels at its liquefied natural gas (LNG) terminal in Bangladesh.

The value of the contract given by the subsidiary, Summit LNG Terminal, was not disclosed, but The Business Times understands from a source that it was worth about US$150 million.

Under the contract, PSA Marine Bangladesh Pte Ltd, part of PSA International Pte Ltd, will provide berthing, mooring, pilot and personnel transfer services to LNG ships calling at Summit's LNG terminal.

PSA Marine Bangladesh will have three escort tugboats, one fast crew boat and one offshore supply vessel to provide these services, which are expected to start in early 2019.

PSA Marine has also provided towage services to LNG terminals in Singapore and Oman.

Summit LNG last year received a concession from Bangladesh state-owned firm Petrobangla to develop a floating LNG terminal facility on a build, own, operate, transfer basis. This comprises a floating storage regasification unit connected to shore by a six-kilometre subsea pipeline in Maheskhali, Cox's Bazar.

It will supply about 500 million cubic feet per day of natural gas to the national grid.

The project is part of Summit Power's US$1 billion investment programme to deliver 1,000 megawatt of power and gas in Bangladesh.

Summit Power, which is incorporated in Singapore, is the largest independent power producer in Bangladesh, holding about 21 per cent of the private power market.