Summit signs $2b MoU with Japan’s Jera

Summit Corporation Ltd yesterday signed a memorandum of understanding with Japan's Jera Asia Pte Ltd to collaborate to supply liquefied natural gas and other fuels and develop on-shore and off-shore regasification and storage infrastructure for Bangladesh.

The primary deal was inked in Tokyo in the presence of Prime Minister Sheikh Hasina, according to a press release of Summit Group.

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The MoU was signed by Toshiro Kudama, CEO of Jera Asia, and Ayesha Aziz Khan, a director of Summit Corporation. Summit Corporation is a subsidiary of Summit Power International while Jera Asia is a subsidiary of Jera, the largest energy company of Japan.

Valued around $2 billion, the objective of the MoU is to collaborate in providing cost-effective and reliable long-term LNG and other fuels supply in addition to developing both on-shore and off-shore regasification and storage infrastructure for Bangladesh.

Jera looks forward to further contributing to Bangladesh's reliable energy supply in collaboration with Summit.

Toshiro Kudama CEO of Jera Asia

In the press release, Kudama said, "Jera is keen to assist Bangladesh's objective to secure a reliable energy supply and is pleased to be able to do that by building up the existing relationship with Summit."

"The signing of the MoU is a significant first step towards achieving the objective. Jera looks forward to further contributing to Bangladesh's reliable energy supply in collaboration with Summit."

Muhammed Aziz Khan, founder chairman of Summit Group, said: "A country's energy consumption has become the main index to its affluence and development. Like the rest of the world, Bangladesh is also facing energy security concerns as a result of high-interest rates, supply-chain shock and market volatility."

"At Summit, we are offering solutions through the development of much-needed LNG storage and supply infrastructure with our partner, Jera."

Summit is the largest independent power producer in Bangladesh, representing 17 per cent of the country's total electricity installed capacity in the private sector and 7 per cent of the overall total installed capacity.

Summit owns and operates 18 power plants in operation or under development, and runs Bangladesh's second floating storage and regasification unit and LNG import terminal with a daily regasification capacity of 500 million cubic feet.

In 2019, Japan's largest energy company Jera acquired a 22 per cent stake in Summit Power International Ltd for $330 million to establish major energy infrastructure, including power generation projects in Bangladesh.

Salman F Rahman, industry and investment adviser to the prime minister, Abul Kalam Abdul Momen, foreign affairs minister, Zunaid Ahmed Palak, state minister of the ICT Division, Prof Shibli Rubayat Ul Islam, chairman of the Bangladesh Securities and Exchange Commission, Lokman Hossain Miah, executive chairman of the Bangladesh Investment Development Authority, Iwama Kiminori, Japanese ambassador to Bangladesh, Norihiko Ishiguro, chairman of Jetro, and Faisal Khan, additional managing director of Summit Corporation, were present at the signing ceremony.